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Strategies & Market Trends : Value Investing

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To: A1111 who wrote (71441)10/27/2022 9:38:24 PM
From: Paul Senior  Read Replies (1) of 78628
 
If working capital is negative, then it's not a valuation metric I can use, and so I've no answer to your question as to how to use working capital. And if it were at the same time a high growth company, i.e. rapidly increasing sales, with high p/e or no p/e, high price to sales, high returns on equity but very high price-to-equity (high price to low book value), and all that doesn't deter me, then I've only got a qualitative view of the company that I can see.
I've got a couple like that -- I like the products or prospects regardless, and I buy. Generally, I get hurt pretty badly when I do that.
Just my opinion and experience. Yours may be quite different.
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