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To: 1Coffeehound who wrote (13193)9/30/2017 11:37:38 AM
From: E_K_S  Read Replies (1) | Respond to of 13200
 
FYI The GN model shows SCHN as fully valued w/ a fair value of $24.80/share

Remember the GN valuation model is only one of many different valuation metrics and does not mean than SCHN is not a good investment. GN model looks at BV and EPS (also debt) and typically signals a Buy if/when BV exceeds the market prices and/or stock has sold off for various reasons (usually a specific company event) and EPS is declining (and getting worse).

The value proposition in these GN plays is you Buy when the company is experiencing company specific issues (and/or in a down cycle) and you expect EPS to have bottomed and now get better (ie back on growth curve). The company has good valuable assets (as reflected in stated tangible BV) w/ little to no inflated Goodwill and debt/leverage is manageable.

Many times these GN opportunities flash a Buy when Debt is too large, EPS is falling and company seems to be spiraling down (to possible BK) hopefully due to bad management (that can be replaced) or some general economic event that will get better.

Good Investing

EKS


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