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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (50760)	2/2/2013 9:47:36 PM
From: E_K_S	Read Replies (1) of 78462

Clownbuck - You raise some very good points w/ those pension liabilities but the market really does not seem care about this liability (at least not yet). I need to work that into my initial scan when I am checking out these older companies. T made a one time pension charge to their just released earnings last week and the stock actually moved higher after their announcement. AT&T Will Take a Charge of $10 Billion for Pension Costs So does the market care? I know Verizon has the same issue. As a stock holder I do not really care as long as the company pays my dividend and it is even better when they increase it like LK. The also were buying back their stock so maybe rather than doing that, they applied those funds to future pension costs. So, I have to disagree w/ your assumption that "the market" cares about future pension liabilities. However as a value investor, it's important to me all other things equal. What's so bad about looking at "key" metrics comparing them and then assigning a scoring factor? Remember these are initial scans. It;s their relative performance I am interested in. That's not to say that the author maybe should have included these pension liabilities as another scoring factor. Grommit mentioned some other possible candidate stocks in this sector but those were smaller and in specific niche products/service. Also, those companies have no pension liabilities either. I am leaning to one or two of these smaller niche players but many do not pay a dividend and/or even sell at the low PE's than the ones reviewed in the Seeking-Alpha article. Therefore, if you know of any of these smaller companies that participate in this sector (ie software, drone development, smart missile software, etc) please post. I expect many of these companies will not fall into the "value" company classification but may still be good investments. EKS

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