| vik589 Mon Aug 21, 2006 8:11 pm |
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BLT
Blast
What do you think of this one at current price
- PE is around 4.9.
- 10% held by insiders
- Hit its 52 week low today (8-21-2006)
The thing i don't like about it is that the year-to-year earnings is down quite a bit and its debt is pretty sizable compared to cash.
Thanks |
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| blast_investor Mon Aug 21, 2006 10:39 pm |
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Hi vik589,
This stock earning was going down. This may have to do with housing slow down recent as the business of this company is linked to housing market.
The valuation number looks low, and there was insider buying recently as well. But this is likely to be cyclical stock and Cyclical stock valuation is tricky. The peak earning of cyclical stock is high but you can not based on its past earning solely to determine the valuation.
The way I look at this type of cyclical stocks is explained here:
http://www.blastinvest.com/article/ValueCyc.htm
It will need to do some homework to determine the valuation of this stock. I have not studied enough of this stock and I could not tell whether it is cheap stock or not. |
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