Yesterday, Barron’s wrote a bullish story on Laboratory Corp. of America. Chieftain Capital Management, which is run by value investing heavyweight Glenn Greenberg, has held the stock for a number of years and made a great return on the stock. Chieftain holds 3,615,421 shares as of its most recent Form 13F filing.
I thought it would be constructive to look at Chieftain’s entry point. (You can click on the graph to enlarge.) Chieftain’s initial purchase was as low as 10X earnings. According to Morningstar, LabCorp. currently trades at 15.3 times current earnings and 12.9 times its forward earnings.