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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: KevRupert who wrote (12077)	2/19/2001 11:28:25 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78524

Advalorem.... I opened my spreadsheet to the series of stocks I analyzed at that time and saw that I have a NetNet valuation of $15.47/share, not the $23.00/share you credit me with. And I thought to myself, "Well, bucko, here's another mistake you made in the public forum!", and I still may have....but according to this post: Message 15365796 I posted the lower number(that's not to say I couldn't have goofed with listing the number elsewhere). After this post to you, I intend to go and read the 10Q and "Management's Discussion" again to refresh my memory('cause mine's only a quarter of a second long!). But it seems to me that CEGE sold a couple of hundred million dollars worth of ABGX within the 9 months of the reporting period I was getting my numbers from. This is why their Current Assets(cash) jumped so much. As far as what I use for numbers....well, I'll take the number of shares from a public site like Yahoo or Stocksheet. That's because I'm basically lazy and don't feel like hunting down why the 10Q and 10K numbers of shares don't match the numbers on the sites I just mentioned, and it is usually not worth the effort, because those site have it right most of the time. I know I should be, maybe, using the diluted number of shares on the theory that they are the most conservative number. However, in NetNet situations, the stock price is so depressed that I don't think an appreciable amount of stock options will be exercised or convertibles converted. The other numbers I use I get directly from the company filings with the SEC....the 10Qs and/or 10Ks. I don't know right now about CEGE, because I haven't gone back to the filing yet, but a lot of the companies I've been researching lately are listing the impairment of value in their investment holdings as losses. I think accounting rules require them to be "marked to market". Additionally, if CEGE listed the ABGX holdings under long term assets, I already have discounted their value quite a bit as I discount all long term assets by 50% as part of my NetNet calculations. Occasionally, I will only discount long term assets by 40%, but this is generally for those companies who have depreciated PPE beyond 50% already and don't have significant other long term assets whose value I feel is suspect. Hope this answers your questions....I'm off to the 10Q! Timba