Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I am long this company. I own it around $15/sh. and am naturally disappointed about the recent performance. However, I have noticed what I believe to be a significant positive development over the 6 to 8 weeks.
According to the IBD, this stock was owned by 28 mutual funds at the begining of December. Share price at that time was about $21. As of today (1/27/98), there are 36 mutual funds that own this stock. So, during the month of December and then moving into early January, while the stock price declined from $21 to under $10, 8 new institutions opened long positions. Even though November and December "comps" were off, net sales are increasing, and we still have a reasonably clean balance sheet. The current management team owns about 11% of the stock, and has navigated a near incredible 2 year run. I think their true test is in front of them because they are now facing tougher comps. With a P/E of 8, and an industry average P/E of approx. 20 - 22, I think this stock, although not without its potential problems, represents a reasonably good value at the current price.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.