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Strategies & Market Trends : Value Investing
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To: MCsweet who wrote (50561)1/11/2013 12:02:49 PM
From: E_K_S2 Recommendations   of 78687
 
Hi MCsweet -

I agree w/ most of what you conclude, it is definitely a company specific situation. I bought some deep discounted REIT prefereds during the 2009 "crash" and those truly were "value" buys based on assets owned (in hindsight).

I do think that the SVU Notes (8% 5/2016) were at a significant "value" buy in June when I picked up my lots for $0.84 on the $1.00 (a 16% discount to PAR). I am not so sure I would look at other discounted notes. I was quite familiar with SVU's assets and I guess the private equity company that did their purchase yesterday was too.

The key for me was to try to find a sector and/or equity/debt that was selling at a significant discount and provided a low risk high return opportunity. Prior to 2009, I never owned and/or looked at preferreds and or deep discounted bonds. I have been making equity investments since 1976, so this area of investing is quite new to me.

Maybe the other take away is to always keep your options open when scouring for "value" opportunities. I was surprised to see that Graham even considered discounted Bonds and/or preferred equities in his field of value.

Who would of thought that GM would go into a structured BK and/or have as many banks defaults in 2009. And I wonder if Graham ever thought the Fed would do this QE to infinity policy. We are living in interesting times.

EKS
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