No. of Recommendations: 1

Thanks for the comment. Sadly, I’m closer to the end of my time at TMF than the beginning. The internship wraps up in about three weeks. It’s been a great experience so far.

I mostly came to understand what I know of investing through Buffett and Munger. Therefore, while I look for great companies, of which Sun is certainly one, I also strive for some reasonable margin of safety. That doesn’t have to be all price based, but it’s a fairly large part. As you say, what seems expensive at the time often looks cheap in hindsight.

Looking strictly at the multiples, SHNY seems expensive… which is what I would expect from a company such as this. I must admit my research was limited strictly to the 10-K, so I haven’t read any earnings reports, looked at competitors, or studied the market. It may be there is more value here than I realize.

Just out of curiosity, I took a look at their past growth and expected growth for the next two years on S&P Capital IQ. They had tremendous growth in 2010-11 coming off the market bottom. Less than .5% in 12-13 and about 5% YTD. I can’t speak to the accuracy of their predictions, but Capital IQ expects around 10% each of the next couple of years.

Print the post  


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.