Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (12590)	6/5/2001 8:39:51 AM
From: Dale Baker	Read Replies (1) \| Respond to of 78704

BLX - I don't know anything about this business niche, but a few impressions: --BLX trading at book value is good, depending on what makes up that book value --Earnings growth seems to be excellent. What is driving it? --Share price gain YTD is minimal. I would probably pass based on that. A net 2-3 point gain since January is not the 45 degrees that really turns me on. --Economic turmoil in Latin America would make me very wary of anything related to the region. Interesting but not for me. I am looking at QFAB and GRTS (buying OSH). Thoughts welcome.

To: Paul Senior who wrote (12590)	10/25/2001 3:13:26 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78704

I'll try again with BLX. They primarily make short term loans to Latin America companies/banks to finance trade. (primarily exports to USA) finance.yahoo.com Negatives are: Potential disruptions/decline in trade due to increased security measures/recession. Potenitial - if not probable - default by Argentina on huge loans. IMF may not bail them out this time. Many Argentinian banks are stockholders in BLX. They might have to sell their shares. I'll guess that even if BLX business is safe, news will headline Argentina default (if it happens), and this could further lower the price of any US-listed Latin American stock related in any way to Argentina (or Brazil) Stock has traded lower - cratered, imo - when investors have lost confidence in prior foreign trade crisis (i.e Asia in '98). Competitor is having accounting issues and may be overextended or may not have properly assessed its credit risks. Perhaps an issue for investors with BLX too - of not knowing much about BLX loans or customers. Not that much revenue growth. Positives: Good history of fairly steady 14% on ROE. Stock price below book value. Stock price has come down from highs of this year. Company reports very difficult/challenging business environment now, but stock still at a good p/e (I assume earnings will not crater), and good dividend yield. Their loans - from what I guess - are mostly short term in nature. Latin American countries will still want to export to USA. Steadily rising dividends; common stock buyback in place. ------------------------- I am starting a small bet today within a well-diversified portfolio. Paul Senior