Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
Quite the fall. Down 60% from its highs a year or two ago.

Anybody think the price will get below intrinsic value at some point?
Unlike 2008, I imagine the odds of implosion are pretty low, and they do generally make some money.
That implies a positive intrinsic value, which implies the existence of a price which represents a margin of safety.

In the most superficial possible analysis, earnings estimates seem to be in the buck a share range, so a price around $13ish is a P/E of around $13ish.

From the science fiction department, Value Line's 3-5 year price target is $30-40.
If that happened, (not a prediction), buyers today would be very happy with 2-3 times their money.

On the other hand, the business is in free fall, firing people as fast as they can and not entirely sure what business they'll stay in.
Certainly not as bad as HP was, but certainly some existential crisis stuff going on.

I'm not biting, but there could be a price at which I would.
As a very wild guess, at under $8 it's probably less than a two foot hurdle.
At some point maybe Mr Buffett can get out of the bathtub and do a second round of preferred.

Does anyone have any great insights?

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.