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


To: Paul Senior who wrote (51)3/30/1999 12:53:00 PM
From: Investor2  Respond to of 387
 
Re: LI, RPM, and SHLM.

I don't follow LI or SHLM. Based on its historical dividend yield and PE, RPM is currently at least fairly valued and maybe even cheap. However, the question is this: Why, in this period of sky-high P/E multiples and low yields, is RPM hovering at 52 week lows? Is the stock being unfairly punished for a minor slowdown or is there something more serious on the horizon? Not having the answer to that question is making me nervous. Nevertheless, I've been buying under $13.

Best wishes,

I2



To: Paul Senior who wrote (51)4/1/1999 1:18:00 PM
From: Investor2  Read Replies (2) | Respond to of 387
 
More on RPM

"Another stock that could show good long term results is RPM (RPM). The company operates primarily in one business segment; the manufacturing and marketing of protective coatings.

The coatings products are used for both industrial and consumer applications. Consumer products include Rust-Oleum, Bondo, and Bondex. Earning have increased for 50 years in a row. The factor that has depressed this stock is its overseas exposure. Sales and earning estimates have been trimmed a little over the last year, but this company has a long history in overseas markets.

This stock can now be purchased at the lower end of its historical price to earnings and prices to sale ratios. The current consensus estimate is for earnings of 99 cents a share for the year ending in May.

In all three cases, I am not expecting strong returns in the next few months. To be rewarded, you will have to be willing to wait 12-24 months. These companies have stumbled lately, but have strong long-term records. This is a good time to buy solid growth companies, such as these, at depressed prices."

cbs.marketwatch.com

Best wishes,

I2