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Strategies & Market Trends : Disciplined Investing, especially the NAIC way -- Ignore unavailable to you. Want to Upgrade?

To: The Philosopher who wrote (380)	2/3/2003 1:00:10 PM
From: - with a K	Read Replies (2) \| Respond to of 469

You make some good points on KG, Christopher. On one hand you have the analysis and valuations that say it's a screaming buy and on the other hand the chart says something is terribly wrong, which could be as simple as Wall Street doesn't get it. Which has happened many times! I sat through a very informative seminar recently by Merriman Capital. One point Paul made was that sometimes "we don't know what we don't know." Which is exactly what you said: >>Only thing that worries me is whether there are things I don't know. The other thing I came away with is the long-term advantages of value stocks (with low price/book ratios), especially in the small-medium cap space. His data about asset allocation was compelling, and the thing was, it was data from some rather significant academicians and Nobel price-winning economists. It resonated with me because the NAIC approach has taught me to look for the BMETs and PAYXs of the world, and if you don't apply reasonable judgement or accurate data you can get hurt by a misleading conclusion. (You had made some good points about the valuation of PAYX here, but I bought anyway and am now paying the consequences!) The challenge in using the SSG tool to find these kinds of value stocks is that it is not looking at PB at all, but you can make up for it somewhat by the judgement you use. Anyway, I'm now keying in on a shopping list of these kinds of stocks, and I will add KG to my watch list. Thanks for the heads up. - Kris