Dear Diary,
After a week of studying Abercrombie & Fitch (ANF), I decided to pass on a purchase this morning at $70 per share, or about 11.5 times expected earnings per share over the next 12 months ($6.05). I don't like the 1.76 Current Ratio.
In a recession, great stocks can sell at 6 to 10 times earnings, so I've been more conservative than buying at Relative Value to the 30 Year Treasury Bond recently. Plus, I want to get back into making the money from the Holy Grail criteria that I've already discussed. All I see in the ballpark right now is American Eagle Outfitters (AEO) and Croc's Inc. (CROX), so I bought CROX this morning to catch that position up with AEO.
I will say that I was in Wal-Mart yesterday and saw some "clogs" for sale that look a good deal like Crocs, without the little jewelery, so I don't know if CROX has a vast future before it, but I do see a recovery from its current 6 times expected earnings per share.
My CPA and I are working up the paperwork on an endowment to fund projects dear to my heart. I really have no great need for personal wealth, but I do feel we need a vehicle to do our fellow man a good turn. It makes us work harder. It will fund medication for leper cures, cancer treatment, purchasing slaves their freedom in Africa, etc.
Gene
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2005, In Front of IRS Building, Washington, D.C.
Diary of a Business Investor
Gene Chapman
2005, In Front of IRS Building, Washington, D.C.
About Me
- Gene Chapman, Author
- P. O. Box 295545, Lewisville, Texas 75029
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