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

To: Shane M who wrote (3982)	5/16/1998 9:37:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78817

Shane M. re: Bowne (BNE). Well, I'll respond, but I'm not the expert you are looking for. (I gave him/her/them a couple of weeks to respond, but I didn't see anything). BNE is one of the few printers who supply the legalese documents in takeovers, mergers, etc. It's a niche business IMO --secrecy and trust are important as one might expect, so there's some barrier to entry. Yes, in market downturns, this stock has dropped - and IMO - both because it's a stock itself, and because volume of work decreases and BNE customers (financial cos. themselves come under cost constraints)put pressure on BNE. That's IMO. In the past few years, BNE has expanded in at least two ways. They've got very digitalized, and IMO have used this expertise to manage or outsource the stockholder info reports that companies use to communicate with their shareholders. BNE as a value stock could generally have been bought in the $10 range over several years in the '80's and 90's. (Still sorry I didn't!) But now we may be looking at a growth vehicle rather than a mundane publisher. Therefore, from a strict value perspective (that is, from MY perspective of value)I see the stock price as high, the pe as fair, the psr though as relatively too high (now compared to past years), and the price/bv. also relatively high. Not a particularly great value play. However, if BNE is viewed more as a growth vehicle (or comes to be viewed that way), then the current pe of 15 is (or may be) low, the revenues are increasing nicely, business is expanding, and the stock price might just be a good buy at this point (especially if this is the point at which the perception of the company is changing to technical/niche/growthie from stodgy/publisher). Just my thoughts. Paul.