Dale,
First, I never stated that ALD is "better" than MCGC.
Instead, I stated that I, too, was eyeing MCGC; however, I chose not to invest.
I don't understand the mentality of averaging down in broken stocks mired in controversy and asserting that is a safer value strategy than buying stocks with a steady up channel over time.
To each their own, but I should caution you. In this type of market, one day a company is better than "sliced bread". The next day, its mentioned in the same sentence as Enron.
My reasoning is simple on this one. I am reading that many VCs are hurting right now b/c many of their portfolio companies may go bankrupt. Therefore, if this is true, how can MCGC stay profitable when many VCs are worried?
MCGC is not a value stock as defined by Graham and Dodds. Instead, I view it as a risky company.
Let me ask you this question in a different way. If I theoretically put my money in the bank, I will receive 1-2%? Utility stocks are yielding approximately 3-5%.
If MCGC is yielding 10%, one is taking on risk and alot of it with respect to what the market is willing to pay with respect to Dividend yields. |
