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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (20719)2/22/2005 8:46:22 PM
From: E_K_S  Read Replies (2) of 78748
 
Hi Paul - I will look at NCC and JPM as I believe the next sector move will be in the banks. What is your take on the dollar and the announcement today that South Korea is looking to other currencies than the dollar to peg their currency to? My hedge is to invest in "value" companies that hold natural resources like oil, land and other assets that will appreciate even if the dollar declines over time.

Many of the oil companies that have assets based on their oil reserves continue to do well, perhaps due to the potential devaluation of the dollar. I think there is a long term value play if companies that have assets in natural resources on their balance sheet could do very well in this environment.

Do you have any new "value" investments that may fit with this theme? I am thinking of land or other natural resources like lumber, oil & natural gas, minerals, or other assets that are not affect by the dollar decline.

If this is a long term trend, the Fed will be forced to raise interest rates to protect the value of the dollar.

I plan to continue to look at value companies that hold assets that will appreciate in a weak dollar environment. If China determines to peg their currency to some other currency (like the Euro) than the dollar, we may see a significant move in many of these "value" companies that have a majority of their assets in these types of natural resources.

GP comes to mind but there are many other companies that fit this theme. I hold a large position in EP that has significant natural gas reserves and MRO which has both oil and real estate (w/ their pipe line assets). I am looking to add more undervalued companies that may benefit from the change in dollar denominated assets.

Any ideas?

EKS
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