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Subject: AFL Study
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Robert Brooker
Boston, Massachusetts


06/29/2009 12:58 PM  

I'm finding AFL in the hold zone.  Based on historic revenue growth of 7.8%, I assumed future revenue growth of 7%.  I put EPS growth at 7% also, based on the notion that earnings can't grow appreciably faster than revenue in the long run.  Maybe I'm being too conservative?


Danny Matthews


06/29/2009 1:05 PM  
I think you are right. the time to buy was a few months ago when it was high teens and low twenties. I did and hope this pays great dividends, (pun intended), down the road.

Danny Matthews
Tuscola IL

armin fields


06/29/2009 6:56 PM  

It’s good to see some SSG discussion at long last. 

- The last such discussion was started by Sean Pulrang on 5-26 (BWLD) and he has not responded to follow-ups by Danny and myself.  Joe Craig never seems to discuss SSGs and maybe never discusses anything any more.  Douglas Gerlach hasn’t discussed a SSG in a long, long time.

- The four session SSG workshop I led last year (which took lots of preparation) got only 1 or 2 responses, none from StockCentral people, not even a thank you.

- I’m reluctant to initiate posts as I’ve gotten zero responses to my last four (on AMED, GILD, DHR, and BKE).  If StockCentral wants to have community discussions, I think StockCentral people need to be a lot more active and encouraging.

- SSGing AFL is tricky since it has averaged -2.1% EPS over the last four years with Hemscott data (-1.7% with S&P data).  These four poor years make the 10 year average unreliable and when the downturn will end is just a guess.

- On the other hand, EPS estimates from six analysts are currently averaging 14.57% for the long term, about half of your 7.00%.  First Call via YahooFinance was the lowest I checked at 13.83% with FactSet CallStreet and S&P both high at 15.00%.

-  I would not rely on any SSG for AFL at this time and would not try to SSG it myself.

Armin


Armin Fields
check out my SSG blog at
http://arminfields.wordpress.com

Janet Hamilton


07/06/2009 2:17 PM  
Thanks for that insight Armin!
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