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

To: - with a K who wrote (18452)	1/15/2004 12:20:26 AM
From: Madharry	Respond to of 78528

I think the JB makes a valid point that there were if not hundreds then dozens of stocks that it was thought would likely reorganize and restructure- not just tech stocks and telecom stocks but airlines, and cable companies, and commodity companies too. when this did not happen and the liquidity was added to the systems these stocks all more than doubled. the bottom paragraph may be more relevant-during the 2000 gogo it was very clear that industries like the Reits and homebuilders were cheap. its tough to find such pockets now.

To: - with a K who wrote (18452)	1/15/2004 12:30:26 AM
From: jeffbas	Read Replies (1) \| Respond to of 78528

I will try again. At the end of the bear market, those companies were priced for bankruptcy exactly because of the absence of good characteristics. The better quality companies were not. It was totally expectable that when almost all survived the average performance was far superior in 2003, because the large bankruptcy risk discount was removed. The most notable example is SONS which went from 18 cents in 10/02 (on death's door) to nearly $10. As a class I doubt these stocks will do materially better this year, and might well do worse.