Fundamental analysis 21?
Value investing and the connections company has?
One very valuable asset in a company is the connection the company has. When we try to turn around a company, the most valuable asset is the "angel" [some one with enough (must be more than enough) money to help the company]. And those companies with good connections, very seldomly talk about their connections.
If a company sells to IBM, what a connection. If a company sells IBM products, what a connection. But if a company is invested by IBM, what a wonderfffffful and marrrrvelous connection? Intel was invested by IBM, years ago, in the tune of only $300 million.
How much was the connection worth? In today's value, in today's Intel revenue, in future Intel earning power, an awful, awful lot. Intel could have gone out of their i486 business or out of business all together.
When we do investment today, company connection is worth a lot of money in stock value. You can buy it on the cheap before turn around, because nobody talks about it. |
