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: Spekulatius who wrote (21727)	7/20/2005 10:30:08 PM
From: E_K_S	Read Replies (1) \| Respond to of 78666

Thank's for the update and analysis of C vs BAC. What do you think of JPM compared to either C or BAC? Our friend Cramer would like us to buy the "best of breed" and on one of his recent shows commented that C has several different core businesses which are only fair. We should really sell C and buy the individual companies that are the leaders in their sector. I like the way C has several diversified lines of business each contribute to the whole and are at a discount to several of the individual companies Cramer suggested. Many times a subsidiary business (and crown jewel) can be hidden away in a larger conglomerate. I think this could very well be the case for C. ================================================================= Have you noticed how pension liabilities are accounted for especially in the case of larger mature companies? Many times it is a hidden liability that the value investor much watch out for (ie unfunded liabilities adjustments). If you looked at the most recent earnings report for Lucent, you will notice that 30% of their reported quarterly earnings were attributed to "extra ordinary gains" from their pension portfolio. I guess it can be a positive for companies when times are good and markets hit new highs. The smart investor will adjust it out of the equation all together. However, if you do not dig deep down into the report, you can be blind sided by the reported earnings. Did you notice any pension liability adjustments for either BAC or C? I am not sure how they they carry this on their books. EKS One of my biggest gains during my investment carrier was buying BAC in the early 80's at $5/share. The company would sell shares to you at a 5% discount to the market every month.