Analysis of TIN – Temple-Inland
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November 18th, 2008
value investor
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What I paid for it:
Still looking thanks!
What I like about it:
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- I love to see recent insider buying. People sell stock for all sorts of reasons, but only buy stock for one reason:
- Low, low, low P/E 0.42, industry at 7.42 (did I read that right… yup ya did).
- Price to book 0.61, industry at 1.4.
- Current Ratio 2.19, industry at 0.92.
- Annual EPS growth at 77, industry at 4.16.
- 5 yr Dividend Growth rate 77.79.
- Market Cap 470M
- Low low price to sales ratio 0.12, industry .23
- 95% institutional ownership, they are running the long race here.
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What I don’t like about it:
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- Meets all the key criteria for Graham Investing… it is cheap, it can pay off its debts, and it has a great dividend… So what is wrong with it. No free lunch is there?
- 95% institutional ownership- when one bank sells, they all start selling and you are in chaos very quickly.
- Half of the business is wrapped up in housing products. The other half is packaging for products. Not really happy little industries these days are they.
- A couple new execs in the company indicates they understood they needed changes, but the people they shuffled around came from areas where they didn’t really have a lot of success so is it enough?
- $47.10 to $4 stock price in one year…humm that is quite a kick for 1yr, quite a kick.
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Why I bought it
Still thinking about it.
Best Case Scenario:
New management increase market confidence. 1 yr ride max and a nice return.
Worst Case Scenario:
Bankruptcy, loose it all good bye.
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