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I am ready to forgive and forget past lapses in judgement. The former CEO's departure must mean that leadership is now undergoing change. I say let the earnings reports determine what the new regime can do.

In response to an earlier post, I determine valuation on a "value" stock the same way I determine fair price on investment property. Look at the earnings and determine if you could purchase the entire concern lock, stock, and barrel -- and still making an average or better than average economic profit after paying the "mortgage". Debt load is a variable but payments are factored out in determining earnings -- so I believe all you have to do is look at the PE ratio of a given "value" stock and compare it to a benchmark that you are comfortable with.

Since investment property PEs average out to 12:1 in my metropolitan area -- that is my benchmark. You can also use the running S&P 500 "basket" PE average. Splits (Growth) and dividends are gravy.
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