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

To: Demetre Deliyanakis who wrote (16522)	3/3/2003 12:44:10 AM
From: 249443	Read Replies (1) \| Respond to of 78669

Demetre, re: quality companies "However, it is hard to find good quality companies with solid dividends." In my view, I'm not having any problem. In my opinion, quality companies with increasing dividends selling at reasonable prices (without tobacco/asbestos exposure) include WL, PFE, XOM, BP, etc. KFT is not immune from the tobacco litigation risks. The KFT IPO S-1/SEC documents addresses these issues -- although it states the likely negative impact is minor. KFT being linked to MO causes KFT to be exposed to litigation impact. Ask any attorney. It would just take a few major cases against MO and the KFT holding would be part of the settlement package. Attorneys don't miss these type of issues. :) I'm not saying what's right or what's wrong about the tobacco issue. The fact is nobody knows how the litigation will turn out in the long-term. I prefer to invest in companies where a liability such as tobacco, where supposedly millions have had their health negatively impacted, does not exist. Others such as yourself are comfortable with this issue. I respect, but disagree, with your view. That is why I hedge when I own such stocks. It is the same reason I would hedge if I owned any asbestos, airline stocks, etc. But it's pointless to talk about big MO's tobacco exposure, ethical issues, etc. I believe we could have the same conversation about MO 20-years from now. :) Let's get down to some value stocks besides big MO....I like spinoffs, stock buybacks, positive management changes, low P/E, low P/S, high net cash to stock price....