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

To: James Clarke who wrote (12350)	4/16/2001 1:11:48 AM
From: Q.	Read Replies (2) \| Respond to of 78822

re. <<... the logic of your analysis and emphatically say its wrong>> Apparently I didn't explain myself so that you can understand me, James. Of course I realize that a company needs working capital to operate. (You must think I'm very dim to suggest otherwise.) As a shortseller, I thrive on selling stocks with no working capital, among other criteria. Those companies are destined for the dustbin. As a long, I'm discussing, on this thread, companies with excess working capital. Please note the adjective "excess," i.e., more than the company needs. A stock with a balance sheet this strong has more value than what is revealed by its p/e or PSR. I can compare two companies in the same industry that are otherwise similar, with similar multiples, and the company that has lots more net current assets will be the better value. If you think there's something wrong with that, please forward your complaints to the various analysts who identify the stock of best value in a sector by subtracting cash before computing a multiple, which is pretty much what I'm doing. The post to which you respond provides a new formulation for finding stocks in this fashion. If you don't understand or like it, that's fine with me, but please calm down, my good friend. That means, among other things, please turn off the caps lock button and refrain from using the exclamation mark. :-)