What to do with DIS, BEAV, and S

**drs3rd** Thu Nov 10, 2005 3:52 pm

What to do with DIS, BEAV, and S
Hope I am posting this under correct forum. I am a new subscriber to service and have always been long term conservative. I have limited time working and raising family and can only do limited research. This is what apeals to me about this Blast service.

I got fed-up with A.G. Edwards fees and bad advice over the last 8 years, so I opened a regular trading account with Scottrade. Also, I am transferring over to separate account, my IRA. I have already set-up similar porfolio to Blast with my accounts hoping to mirror his perfromance over the long term.

However, I retain 3 stocks held for about 5 years and hoping I can get some opinions whether to sell and re-invest or just sit tight for a awhile. The 3 stocks are DIS (Disney), S (Sprint) and BEAV (BE Aerospace, Inc.).

My wife and I picked Disney because we live near Orlando. No other reason than that. The other two stocks per the advice of A.G. Edwards. We have held them about 4-5 years. Does anyone have some thoughts on holding on to these stocks any longer? I feel like I want to sell them and re-invest into some of the Blast portfolio picks. Any suggestions, advice, opinions, etc. would be most appreciated. Thanks!

-Don

**blast_investor** Thu Nov 10, 2005 9:17 pm

Hi Don,

welcome to the VIF forum. Great that you fired AG Edward. I don't believe brokers understand investing, not to mention the conflict of interest part.

Because I am long term oriented value investor, I am going to give you my opinion on the 3 stocks from value investing point of view. In value investing world, we believe the main risk is from high price. Therefore, any over-priced stock is considered risky.

BEAV is cyclical stock. This stock has high price to book, high PE. I do not like it because it is too expensive, not cheap enough for my type of stock picking style.

S(Sprint) is pretty interesting stock. The stock price is down a lot from its peak and it is fairly priced. The business of Sprint is pretty sound and stable. I am actually neutral on this stock although I am not big fan of it.

DIS(Disney), I like this stock's business. It has high barrier to entry. The stock price of DIS is fairly priced too and its valuation is inline with average market valuation. Although I like the business behind DIS, I am neutral on this stock. The reason is that as a value investor I do not buy fairly valued stocks, I prefer to invest into under-priced dirt cheap stocks instead.

My take is that unless you can do your homework on S or DIS or BEAV, you probably do not want to hold into any of the 3 stocks although S and DIS are very solid stocks. In stock market, it is very tough to make any money unless you truly understand business behind the stocks.

**drs3rd** Fri Nov 11, 2005 11:36 am

Thanks Henry and will keep you posted!

-Don