James: WHX. Okay bv is real per your analysis. Yet,stock has sold for 1/2 book value (on avg) 6 of past 7 years. One year it sold at bv. Okay, sell when horse can walk - I can see that. Just seems like horse limps (at 1/2 bv) much more than it walks (on avg.) Okay, stock has earned $2 per share couple of times. Each time pe was (avg) at 5. My point is: based on past averages, stock is about where it has been and regardless, not worth putting 20% of portfolio on. Your point is that it will trade above averages and when it does walk, you'll sell. If it does then you've gone on - learned from and built upon what Graham says. My point is that Graham says - in Everything I've read about how he operates - you should buy a package of these type stocks. Now if/when WHX moves to 20 and you retire from the profits, I will still be saying (in addition to saying I admire your courage and bemoaning my own lack) that to my ears, something is/was not sounding good about it: Somehow I associate these words together (esp. on this thread)--
Graham, Value, Prudence. To my mind you've got the Value right, but you've missed the Prudence. JMO, Paul. |
