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

To: E_K_S who wrote (75455)	4/22/2024 1:45:05 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78437

LEG. I expect I will continue to hold my losing position. I'm looking at a two-year timeframe also. I've got enough losing shares (avg cost $28.27), and my belief/confidence so low, that I'm reluctant to add even more shares as the stock continues to hit new lows (last week). At some point though, I will likely be buying to reduce my cost basis.

To: E_K_S who wrote (75455)	4/22/2024 4:52:15 PM
From: Madharry	Respond to of 78437

kudos to you guys for finding a stock i have never heard of. definitely worth looking into. When we purchased our current house my wife found a bed that she liked where you could press a button and lift either the foot or the head of the bed up . as I get older i have learned to appreciate it this feature.

To: E_K_S who wrote (75455)	4/22/2024 5:25:33 PM
From: Harshu Vyas	Respond to of 78437

LEG has frequently come up on the screens I run. Very much the type of situation I'm looking for. It's just slightly too complex for me. Too many unknown variables and, frankly, the business structure is confusing. A rough SOTP model would be my starting point if I had to try and place a value on it. Don't know if you've done one but it may provide some additional clarity. Maybe as the turnaround gets documented on here as time goes on, I'll understand the business - and exactly what needs to be done - better. For now, I'll pass. As for my own portfolio, I bought some CSV (funeral + cemetery services) recently (not to be confused with CVS) - Carriage Services. At 11x earnings, a reasonable dividend yield and TEV/EBITDA < 10x, it seems a decent bet. Focus this year is on reducing leverage before more inorganic growth in 2026. Will be my writeup next month. FWIW, SCI (Service Corp International) is definitely the better business in the industry but it's too damn expensive at 2.5x sales, 20x earnings, 30x FCF. Out of boredom, went back to '98 to get a feel for the sentiment. 4.2x sales and 32x earnings. By 2001, SCI's valuation had dropped 90% to $1b at 0.4x sales making it grossly undervalued. Maybe the current valuation is stretched? By how much? Hard to tell exactly - worth noting, rates were roughly the same in '98 at about 5.5%. Continue to own Envela - the most boring stock known to man with a beta of 0.09 and an average volume of less than 40k. But it's very easy to hold knowing that there will be growth initiatives taking place this year (and I'm not convinced the market's priced it in). I think, despite my reluctance, I'm slowly drifting more and more into the value camp. Before I know it I'm going to be a stereotype low P/E, low P/B investor. If it ain't broke, don't fix it... Also, am starting to realise my own current portfolio is on the expensive side at 13.5x earnings, 2x book and 0.8x sales. Not really in the spirit of Graham. I know Sean's cautious on the Bear thread. Perhaps the bear chills are starting to get to me now, too.

To: E_K_S who wrote (75455)	4/23/2024 6:36:25 AM
From: Madharry	1 Recommendation Recommended By JohnyP Read Replies (1) \| Respond to of 78437

here I am looking at LEG. this is more than a restructuring. I read the latest transcript, I was expecting to see words like challenging or very challenging instead i saw " deep recession". I am not sure that when the last time the home furnishings business has faced such a bad environment for them. People tend to buy more furnishings when they move into a new home, and because of the differential between new mortgage rates and rates people have on their existing mortgages that movement has been curtailed. I dont have the same confidence that you do that the current dividend will be maintained. Another current negative is that because the furnishings business is in such a slump the company is unlikely to be able to pass along increased production costs to their customers. I will put it on my watch list but a pass for me for now. OT here in the usa I am hearing more about white collar employees suddenly losing their jobs at major companies. I wonder if anyone else has noticed this.