Hi Paul: Well, I believe I'll take the other side of the argument -g-. I don't think DSWLF is such a great bargain. Nor do I think selling in the shares is due to some convoluted unwinding of trading positions by hedge funds. I think: First, you've got some company where people have to work to find information about it, and can't easily get information on it. That means anybody buying it takes a risk that when they go to sell it, that the pool of potential buyers is very limited because there's no real understanding of the company, its management, its business, its customers or its suppliers. No sponsorship. I look at Yahoo, and the first thing I see is that DSWLF sell injection molding parts. Right. A 40% ROE for injection molding. Not very likely, or if true, not sustainable. Obviously something else must be going on. A Chinese company. They play by our rules do they? Maybe more like some of those shrewd Indonesian companies who we are now reading about that allegedly had dough to pay their debts, but found it more convenient to default, panicking bondholders into selling, whereupon said Indonesian companies scooped up those bonds. I like it!
I say there's still much risk in DSWLF. Just as there is with NTAIF (which I do own). Especially when we've go so many choices among domestic co's or large-cap Euro. companies that are selling at distressed prices. JMO. Paul Senior |
