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Tower Automotive, Inc. (TWR) Message Board

  • pruman98 pruman98 Oct 27, 1999 9:19 AM Flag

    Value & Growth

    This stock is trading at a PE ratio of 7.89. It
    is priced only a touch more than it's book value
    with a PB ratio of just 1.10. These numbers indicate a
    stock with low expectations. Yet, when looking at the
    research, the analysts expect the earnings to grow at an
    18.4% annual rate over the next 5 years. Thats more the
    double the expected growth rate of the S&P 500 which
    trades at a PE of about 26.
    All these numbers
    indicate exceptional value. This is a high growth stock
    that is selling at a bargain basement price. When the
    value in this stock becomes recognized it will
    undoubtedly take off. Patience is a virtue, and should be
    very rewarding in this case.

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    • I am long to the tune of 5 figures on TWR because
      of the apparant value that you mention. However, I
      was also very long on SNRZ (Sunrise Assisted Living)
      which also had a huge short ratio. SNRZ tanked by 60%
      in one day after the company announced it would miss
      earnings by a substantial amount. Even though I hate the
      shorts, I am wary of their possible knowledge. TWR's
      short ration of 25% is huge - even larger than SNRZ
      had. Any thoughts on why?

      • 1 Reply to ikaranek
      • Tower is experiencing huge financial
        trouble....probably could be a good thing since all they know how to
        do is buy, buy, buy...they don't know how to run
        what they buy...they need to stop buying.


        Tower will be making huge cutbacks everywhere...don't
        be too confident you will have a position with the
        company whether you are Management-Hourly-Salary-Union,
        etc. It won't make a difference.