Those who declined to buy at the time of my cautionary post 2/1/08 (see my reply to "Charman Buys Even More") are presumably glad they waited. IMHO, it is now time to begin to buy BKS. The cautious will wish to wait a week to see how the reaction to Mr. Grom's downgrade plays out, and maybe see if Super Tuesday voting confirms that a reasonably pro-business candidate like John McCain will likely be one of the two main party nominees. But you may wish to buy BKS before it rises above $31 again.
I bought a modest position.
What are some positive factors for BKS?
--By my rough calculations, based on Yahoo Finance and the intraday price I used today, BKS price/book ratio is now about 1.84, in line with BAMM and much less than the industry average (according to Yahoo Finance).
--Mr. Grom's downgrade appears to be the only reason for the huge BKS price drop today. Mr. Grom is not one of the top analysts on BKS, according to the Star system. The Stifel Nicolaus analyst who is top rated by Star has BKS as "Buy."
--According to Yahoo Finance, the Stifel Nicolaus analyst is also the top Star rated analyst for BGP. He rates BGP as "Buy," also. The point is this analyst seems to do well, according to the neutral evaluaters with the Star system, in this industry. He, unlike Mr. Grom, likes BKS.
--With the drop, BKS's PEG ratio is looking quite decent, much less than the 1.74 Yahoo Finance reported based on yesterday's closing price.
--According to Yahoo Finance, intraday today BKS's price/operating cash flow per share is about 4.56. This is less than half of the p/cf ratio Yahoo Finance reports for SPY and much below the 7.56 Yahoo Finance reports for IWM, the small cap ETF.
If you profit with BKS, please share some profits with a good charity.