Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (21230)	5/3/1998 4:45:00 PM
From: Slava Chechik	Read Replies (1) \| Respond to of 95453

Doug, I came up with similar numbers close to pennies. Could it be that reason for discount is small volume of CST? Big buyers does not want to get in and most of small guys was not interested in oils lately. Slava Chechik

To: Chuzzlewit who wrote (21230)	5/3/1998 5:26:00 PM
From: jbe	Read Replies (2) \| Respond to of 95453

Thread, I am directing this question about evaluation to Chuzzlewit, since he is a financial analyst (and a good one), but it is for anyone who cares to answer. In my view, Diamond H's dismissive attitude towards the market's presently lofty p/e's is justified, in one sense at least. Many knowledgeable people do not think that p/e's (actual or projected) are the best way to evaluate a company. Following O'Shaughnessy, it has become fashionable to use the price/sales ratio as the preferred method of judging a company's real value. I personally favor another method -- price to free cashflow. And there are a host of other methods out there. I see this as an important question, because one and the same company can appear undervalued or overvalued or fairly valued, depending on what measure one relies on. Of course, none of this may make any difference in the long run, as long as the mass of people care more about chasing will o'the wisps than about true value! (Harrumph, harrumph!) jbe

To: Chuzzlewit who wrote (21230)	5/3/1998 11:16:00 PM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 95453

Chuzzlewit, On CST/EVI, I'm not sure that this is relevant but CST also carries its 3.8mm EVI shares that it holds on its books at its original cost or about $11.85/share for EVI whereas EVI is currently around $58/share..... Like you I looked at it wondered what I was missing - but I entered EVI "backdoor" by buying CST. perhaps professional arbitrageurs don't fool with this one since the CST float is small.... Still roughly a 14% spread tonight... If you like another mystery come join Beeblebrox and I on the GNNX Thread. A small OTC media/telecommunications stock with $0.31/annual earnings and $5mm revenues annually, just over the last three weeks announced a series of new contracts that may drive revenues up to $200mm annually! Beeb and I have bought a few shares as we warm to the stock... Indeed Beeblebrox is visiting their home office to check them out next week.... Also look at Rowan Cos., RDC. The CEO has repeatedly said that he is comfortable with an earnings estimate in the $2.50/share range, it just paid off a bunch of its debt and reduced costs of doing business, yet you can get RDC for $31/share. Maybe that is a true sign of value investing- scratching your head and saying "What the heck am I missing here???" Finally anyone riding the AIPN rocket in small energy stocks? (I own no shares)... Sincerely, Doug F.