I know you all thought I was done with this site. Nothing could be further from the truth. The thing is, when there is nothing to do, nothing to invest in, what can I write on? This is an important lesson in investments, when there is nothing to be done, do nothing. You can screw up some fantastic investments simply by doing something for the sake of it. So if I have not said anything, it is because there is nothing to buy. Don't worry, typically a period of nothing to buy is followed by a large number of companies becoming undervalued. Be patient. There is one stock I own, but I don't want to recommend as it seems self serving, though I do believe it is still undervalued.
Nothing has really changed at THI, I think it is a growth stock that will grow for a few more years at least. This is a really patient play, and as I am not patient you see my former point of not having enough undervalued companies. Still not a lot of stores in America, and don't know for sure if it can unseat Dunkin' Donuts, but I like their chances, and there are other countries to expand to. Recently they announced they will open another 500 stores in Canada. Why not? It's been unbelievably profitable here. Let us see where this takes us. So hold the stock. I don't really have a price target but if it ever gets to 40 times earnings, it is probably a sell, though again, take everything into account.
HPQ is interesting. I cannot say why but my assumption is that the earnings power of HPQ is $3.60 per share per year. As a result with a multiple of 10, I would sell it at $36. Hold onto it for now, as really there is nothing else to buy. $30 is what it's at now, but I really cannot find cheap companies to replace it with. The business is running along smoothly with nothing new to report and I expect it to for a while.
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