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

To: Mark Adams who wrote (12100)	2/22/2001 4:41:30 PM
From: TimbaBear	Respond to of 78470

I, too, am always suspicious of how a company might be expanding business. They might be moving into riskier client base. That isn't, of itself, a disqualification. It depends on whether the interest charges compensate them adequately for the assumed risks(and increased subsequent losses), they have the appropriate policies and experienced personnel in the collections department, and whether they have adequate loss provisions listed in their financials. One of the reasons I stay away from banks and finance companies is because it is almost impossible for the average investor to discover underwriting quality and collection efficiency until it is too late. Timba