#1
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Graham-Style DOV vs. DVD
In case my Buckeye comparison is uninteresting or is a no-brainer (I don't know, I've never researched either), here is one other pair that should be OK:
Dover (DOV), large conglomerate Dover Motorsports (DVD), small racetrack company |
#2
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Re: Graham-Style DOV vs. DVD
I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me.
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#3
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Re: Graham-Style DOV vs. DVD
[ QUOTE ]
I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me. [/ QUOTE ] I'm going to take a shot at these when I get some time. |
#4
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Re: Graham-Style DOV vs. DVD
[ QUOTE ]
I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me. [/ QUOTE ] This is actually a very good excercise, and I will likely take a look at them over the weekend. |
#5
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Re: Graham-Style DOV vs. DVD
DVD - Dover Motorsports
I'll start with this one because it's easier. Price: $6.14 EPS: 0.19 TTM, -0.032 5 yr. avg. P/E: 32.3 ROE: 6.2% Net Margin: 8.3% Dover Motorsports promotes auto racing events. For such a high earnings multiplier, I'd want to see a good business, and I don't. Its sales haven't grown at all in the last few years. I also looked at the last 10-K, and management has reserved 10% of outstanding shares to grant itself if the company ever does grow. So any future earnings are subject to significant dilution. Wouldn't touch it. DOV - Dover Price: $40.82 EPS: 2.41 TTM, 1.30 5 yr. avg. ROA: 7.2% ROE: 15.0% Net Margin: 8.1% Dover is a manufacturing conglomerate that grows by acquisition. From its 10-K, it looks for stronger-than-average companies with high value-add that can either stand alone, requiring little to no management, or that can be added-on to existing operations. Its annualized earnings growth rate is 8.5% over 10 years, and it returns a dividend yield of 1.6%. Recently, it's taken on significantly more long-term debt as a proportion of assets: 1.34B debt to 2.22B book. Dover's future growth rests upon its ability to identify and buy good companies, which adds an inherent risk. Overall, Dover appears to be a solid operation, but doesn't appear to be a value at this price. I wouldn't buy either company, but I'd strongly prefer DOV to DVD. |
#6
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Re: Graham-Style DOV vs. DVD
I'm giving you my vote for Sklansky's top ten smartest and expect you to bump diablo for number 10 this year.
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