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Schwab Intermediate-Term US Trs ETF Message Board

  • aolanimal aolanimal Aug 7, 2001 8:29 AM Flag

    kinda scary

    I was thinking about investing but it's kinda scary holding such a thinly traded stock. The rewards could be huge but the downside is equally as scary. It would be tough to unwind even a meager 5000 shares.
    Interesting company but I'm scared of an insider dumping some shares. Also only one mututal holds this thing and what happens if they decide they want out? No support will be left. To many non-financial issues will make me pass on this one. Any comments out there? Does anyone know this management?
    The Aol Animal

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    • Yes you do raise some valid concerns about SCHR, but in my opinion this is a solid company at a very reasonable price (i.e., cheap price) They have an excellent annuity type business in the "sharps disposal" business in the Northeast. The company sells for 60% of book value and at a P/E of unfer 8! You certainly do not find this type of value in the small, mid or large cap issues. A solid business below book and at a p/e of 8!

      My concern here is that management is a little too adventuresome. They have used thir excess cash flow to make investments in companies that have been outside their area of expertise. This has resulted in some investment losses, but they have been small and manageable.

      Yes it is illiquid and the price will move significantly on limited volume, but their in lies the opportunity. You should look to buy on these price drops and look to hold this company for a few years to realize the tru value in this franchise.

      I would recommend reading their latest 10K.

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