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Author: kahunacfa Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 51  
Subject: Buy the Company that bought my Stride-Rite(SRR) Date: 12/27/2007 6:07 PM
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In May 2007 Payless Shoe Source(PSS) bid $20.50 for the Stride-Rite(SRR) I bought for $15 per share in April 2007. I was not happy, because I believe that Stride-Rite was worth something over thirty-two dollars per share. The Payless bid did cause me to take a closer look at the now Collective Brands(PSS). Recent new management (CEO) from Nike, the company "stole" my Stride-Rite for less than it was really worth, in my opinion. Goldman Sachs Asset Management Company owns over ten percent of Collective Brands. Goldman, in my over twenty-years of investment management experience is known as a very, very smart, savvy investor.

So I have been buying another company that currently meets my Margin of safety criteria. This company first came to my attention, as I said, when they bid $20.50 in May 2007, for the Stride-Rite(SRR) shares I bought for $15 per share in April 2007.

I believe that Collective Brands(PSS), formerly known as Payless Shoe Source(PSS) has an Intrinsic Value in the range of $63- $68 per share, (warning I could be wrong). Accordingly I am willing to pay as much as $17 for the shares, but, of course prefer lower prices.

Happy Holidays,

Kahuna,CFA
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