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Strategies & Market Trends : Value Investing

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To: Don Earl who wrote (15069)8/6/2002 4:45:04 AM
From: Bob Rudd  Read Replies (2) of 78520
 
Don: <<The scary part is I spent a fair amount of time digging through the filings, and there wasn't ANYTHING disclosed which would suggest the amount of trouble they are in>> The filings are often only part of the puzzle. Short sellers and financial journalists are generally better at sniffing out trouble than auditors that help prepare & certify the filings. Rarely do you find management disclosing in the filings: "I am a weasel, I have always been a weasel and if you dump money into this co. I will steal it cause that's what weasels do." 'Too good to be true' stocks often come from the activity of shorts who have figured the weasels game and are building a position to profit from it while to value guys it looks cheap. Insider selling is a major weasel 'tell' too. A lot of train wrecks can be avoided by simply refusing to buy anything with substantial insider selling anywhere near current prices no matter how cheap and no matter what weasel excuses they give for selling.
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