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Greg Herman
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Age: 22 Home Residence: Mount Holly, North Carolina Investing Philosophy: Extreme Distress Earnings Plays During Multi-Year Market Bottoms; I could care less about stocks that are 10%, 20%, or even 50% undervalued. I will wait an entire decade for the oppurtunity to buy 10, 20, and even 50... More
  • Companies With Great "Stakeholder Earnings" 0 comments
    Jan 3, 2011 5:34 AM | about stocks: ARO, GME
    I have found 2 companies with Stakeholder Earnings ratio under 10. These two companies are Aeropostale (NYSE:ARO) and Gamestop (NYSE:GME). I like both of these companies, but only have made an investment in one. I have bought into Aeropostale (ARO) because of the great price and the company's aggressive stock buyback program. The company does good in good times and does excellent in bad times. Additionally, I would like to point out that the company has excellent operations. Gamespot shares many of the same numerical characteristics and I would love to invest in it, but cannot because of the changing structure of the industry and the evolution of the video game business to the digital sphere. Changing industry dynamics generally spell trouble for investors. Even if the company can change its model, no one knows what profitability it will bring. I would have to wait for the Stakeholder Earnings ratio to drop under 5 for this company, before looking to make a purchase. I hope that the ratio does drop this low so that I can make a purchase. Otherwise, I will simply continue to pass on buying shares in Gamestop (GME).
    Stocks: ARO, GME
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