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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (61449)11/12/2018 1:56:42 AM
From: bruwin  Read Replies (1) | Respond to of 78666
 
I would agree that there's nothing wrong with MHK ....

If one looks at the company's Annuals ....



1) Operating Revenue has increased regularly for the past 5 years ...
2) EBITDA has increased regularly for the past 5 years, AND the latest EBITDA/Revenue = 1796/9491 = ~19%
3) Cost of Debt decreasing regularly
4) Pretax Income has increased regularly for the past 5 years
5) Net Income has increased regularly for the past 5 years, and latest NI/Revenue = 971/9491 = ~10%

And if we look at "Retained Earnings" (6) on the Balance Sheet we see a healthy ongoing increase due to positive contributions from Net Incomes ...



BUT then, we look at MHK's chart .....



..... and we see an ongoing fall off in its stock's price .....

Well, IMO, when negative "Technical Analysis (TA)" clashes with positive, factual "Fundamental Analysis (FA)" then my money is on MHK ..... I don't like to put the Cart (TA) before the Horse (FA) ...... (unless there's some Major Negative aspect within that company that is not publicly known)



To: Spekulatius who wrote (61449)11/13/2018 11:22:11 AM
From: benbuffett  Respond to of 78666
 
I too recently started small position in MHK. I have followed this co for over 10yrs. What I thought was a good buy at $50ish in Oct 2008 became a much better buy by FEB 2009 at $17ish. So keep in mind these sector related companies can fall much farther than one thinks. ROE has not changed, still around 14%. Same mgmt with 30% stake.