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

To: Spekulatius who wrote (21893)	8/12/2005 3:53:11 AM
From: itilis2003	Respond to of 78711

Take a look at MACC & RAND, they both trade at substantial discounts to NAV. Some discount is valid given the illiquidity of their investments as well as what I consider less than conservative accounting. Many BDCs structure investments with a large dividend which allows them to offset their high expenses. The problem is, they maintain the valuations of these companies despite the fact that they just gave back 10% of its valuation. (Or whatever) BFCF sounds a little different. Still, the insider sentiment bothers me.

To: Spekulatius who wrote (21893)	8/12/2005 10:30:10 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78711

BFCF: I'll add a little here to my position. As you know... A problem with these undervalued types like BFCF is that if the stocks held - LEV, BBX, etc - drop, then so too will BFCF. Yet BFCF will still continue to sell at a discount to its underlying holdings. Thus a possiblity for being the classic value trap, imo. Homebuilders have been taking a hit recently; if it continues, LEV will drop further (I presume) and so too BFCF. Also if bank stocks turn down because of increasing US fed rate hikes, BBX will decline (I am guessing)and this will also be reflected by a drop in BFCF stock (my guess). Still, the businesses aren't disappearing. I'm willing to hold on to see what develops.