Post #936 by mungofitch on the Falling Knives board

Investment Strategies / Falling Knives

Unthreaded | Threaded | Whole Thread (3)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 12

Great moat. I personally don't see any AI risk for them as they are all but legally mandated.

But I guess it's a question of "dip relative to what". The price has fallen, but the valuation level is still a good 20% above its own "normal" range which is itself pretty lofty for cheapos like me. e.g., very crudely, 23 times cash flow or 27 times net earnings would give you figures in the $370ish area rather than today's $450ish.

Around 2010-2013 they traded around 12-18 times earnings, and that seemed perfectly normal to everybody at the time. I'd set an alert for prices under $300. But as mentioned, I'm a cheapo.

Jim

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (3)

Prev | Next

Announcements

Falling Knives FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.