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Strategies & Market Trends : Value Investing

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To: Elroy who wrote (69827)	2/27/2022 4:40:25 AM
From: petal	of 78870

Hello Elroy, Fair enough – the post was something of a catch-all/hedge, I realize now. Sorry bout that, and thanks for the suggestion! Although I do think that I answered your main question(s) "The PE is 2x. The Why?" &/ "What's the catch?" pretty clearly with the standalone sentence: "The catch is that there are no normal earnings, no? As in normal earnings = non-existing/negative earnings." The rest of the post was just a reflection on whether you want to buy steel co.'s when they're making especially large losses, or when they are turning a profit for a change (as during mid 2000's). (Maybe the real answer is neither/never..) Re: dividends, I guess that one could see the small dividend payout as a sign of prudent caution. But in a poor business, you don't want to see retained earnings. You want to see a really high payout ratio. So that's another minus for X in my book. P.S. I see now that I accidentally wrote 'oil co.'s' in previous post – meant to write 'steel co.'s'. (Although same/similar logic probably largely applies for oil and other commodity businesses.)

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