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October, 1999


BUY Enesco Group (ENC) ($15 3/8, recent price). This is another "Benchmark Investing" good-price-to-value asset with excellent long-term potential, though in the short run it may be risky. It has an above average "Value Line" safety rating, a current yield of 7.2%, a 3-5 year "Value Line" projected return of 136%, and a price to value (using Warren Buffett's net cash flow formula with "Value Line" statistics for intrinsic value) of 62%, based on the above per share price. It's best not to purchase this one, though, if you're likely to be spooked by short-term price gyrations. It certainly could go down further before it likely will prove itself in the long-term. Enesco is in the business of designing, making, marketing, and selling collectible figurines, porcelains, and other gift items. Business has not been good lately, but is expected to pick up eventually. Debt-to-equity is only about 6%. It is sure enough that the market price is too low that the company is aggressively buying back its own shares, increasing the potential for the balance.


Larry is not a professional. Don't take him seriously!

Actually, the investment article provided here is for general information only and should not be considered as professional advice, a solicitation to buy or sell any security, or the Word of God. Investors are encouraged to do their own research while considering their personal goals and circumstances, or consult their own professional financial advisors, before making investment decisions. Neither Larry nor LARVALBUG will be liable for any losses sustained by any visitor to this site.

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