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Strategies & Market Trends : Value Investing

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To: bruwin who wrote (66498)	2/10/2021 5:59:57 PM
From: FIFO_kid2	1 Recommendation Recommended By E_K_S Read Replies (3) of 78820

If you are going to look at any financial measure in analysis every one can be manipulated with the exception of free cash flow. The main risks in book value analysis is goodwill and obsolescence . It is rare to see an impairment of assets because the company typically can operate at a positive gross margin in excess of the carrying value of the asset and there is absolutely no incentive to reveal it when you carry debt. The typical surprise to the upside is appreciated real estate held long term. I highly doubt the lumber business will miraculously end up as a long term secular growth business which are the firms I would for the very long term provided I happen to get the shares down to a zero cost. So yes I will likely have to time a sale based upon changing fundamentals. While the probability is low if by chance the sector in the future is mandated by quotas, potential carbon credit revenue, higher margins, no growth and dividends and more predictable I will have to a DCF analysis to determine the fair value.

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