Madharry, as much as you’re entitled to your opinion regarding an individual’s contribution to this thread, so am I entitled to mine. I have no issue with regards to C.Worth’s "investment style", I just do not appreciate the manner with which he has decided to communicate with me. I’m sure you have read discourses between myself and other Board members. In my opinion they have been cordial and constructive. I don’t believe the same could be said for C.Worth’s approach.
Rest assured, I can take any heat in any kitchen.
If you believe that my returns on equity are "unusually high" and are "unsubstantiated" then that’s your opinion, to which you're entitled. I told this Board, quite a long time ago, what were the contents of my USA portfolio. I made reference in Messages 22830 (23/12/05) and 23755 (16/4/06) as to several of the stocks that I owned and when I purchased them, and others.
In my humble opinion, as long as individuals continue to use ratios such as P/S, P/BK and P/CF as their primary means of stock selection, then they stand the risk of choosing stocks that will not necessarily reward them with, what you refer to as, "unusually high returns on equity".
I suspect that the reason why I have achieved "unusually high returns on equity" probably lies in the criteria that I use to screen for and choose my stocks. None of the above three ratios form any part of that stock selection.
I’m not sure why you included reference to SIL in your message to me. If you want me to comment on the stock, all I can say is that this company hasn’t made one cent of profit in over 5 years ! I’m not sure for how long you’ve held this stock, but surely there must be better places to put your money, until such time that SIL can prove, via the numbers within its Financial Statements, that it can make ongoing profits and provide value for its long-suffering shareholders ?
Your sentence, "IF metal price continue to appreciate which I EXPECT they will" goes some way to supporting my contention that Resource-based companies can be risky ventures as the price of their Resource, on which they are so dependent, is completely out of the control of company management.
The "IF" and the "EXPECT" indicates that the Resource price could possibly rise, and there again, it could possibly fall .... not to mention the fact that this mine hasn’t even been completed yet ! I must say, you certainly have an appetite for Risk.
I wish you all the best with your investments. |
