Player Avatar kahunacfa (68.05) Submitted: 6/18/2008 11:52:49 AM : Underperform Start Price: $28.25 RRD Score: +10.61

I like R.R. Donnelly as the largest domestic public printing company. They provide customers excellent service, competitive pricing and all the good thing one might expect of a dominant market leader.

Several problems with the stock as an investment: 1. The US market is in a BEAR Phase that started October 2007, 2. The company's Price Earning ratio is a very generous, and priced for nearly perfection thirty times EPS. 3. Foreign competition is important, for bulk printing with flexible deadlines or long lead time between need for printed product and finished layout and design.

A fair multiple for R.R. Donnelly would be eight to twelve times EPS or a share price of approximately $8 to $12.25 per share. I would buy the stock in that range.

At $30.88 per share the stock is a short-term SELL/SHORT.


Member Avatar TheSecretHistory (< 20) Submitted: 12/1/2010 1:48:00 AM
Recs: 0

Looks like you were right. How do you feel about their current position at 15 dollars a share?

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