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

To: E_K_S who wrote (23511)	3/7/2006 4:21:50 AM
From: Stewart Whitman	Read Replies (1) \| Respond to of 78958

Is this a "Value" play or a "Value" trap? I'd bet that it is most likely a way of throwing away your money. "Value play" implies you make money and "Value trap" implies that your money is somewhat safe but does not grow - this is neither. The equity is so far down on the food chain on Dana - with Pensions/Unions and the debt - that there will likely be no recovery. Take that from someone who's followed lots of companies thru bankruptcy. Heck, take it from someone who's lost money on companies that are close to exiting bankruptcy and have a published restructuring plan that says equity holders will get new stock and than go into liquidation with no recovery. If you do go into Dana, you might look at their bonds. They're trading at about 70 cents on the dollar. Or wait 'til they exit bankruptcy and then buy the new stock.

To: E_K_S who wrote (23511)	3/7/2006 11:56:47 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78958

Oh, wow! I stopped following DCN a year or so ago, when it was still an attractive value buy, though clearly troubled. I did not realize it would go so low and go bankrupt. :( Nice lesson from someone else mistakes. (Not that I learned it: I hold LBY and bought more yesterday - please don't follow me into it :/ ) If you want to invest in DCN, buy bonds like others said. Or buy Marty Whitman's Third Avenue fund. The fund profited very handsomely from KMart investment. If DCN is worth more than it costs, Marty will buy all he can. :) Or if you don't like funds, at least read everything Marty has written before getting into DCN. Shareholder letters too. :) Disclosure: I one small amount of TAVFX. Wish I owned more before KMart win.

To: E_K_S who wrote (23511)	3/16/2006 9:31:14 AM
From: E_K_S	Read Replies (1) \| Respond to of 78958

Just watching . . .DANA Corp. DCN (now DCNAQ) filed for bankruptcy on 3-6-06 and traded at a low of $0.66. Stock could still eventually become worthless but it continues to rally higher. The stock is trading now at $1.62. I guess these potential value bankruptcy plays is a question of Risk vs Reward. It will be interesting to see if the company ever comes out clean from their bankruptcy and can keep a large percentage of their pre-bankruptcy equity (s/b around $6.00/share). ============================================== Conagra CAG is looking interesting. Company announced that they will cut their dividend and is now trading below $20 a two year low. With several of their operations exposed to the potential threat of bird flu, CAG may become a distressed fire side sale candidate. Watching for now but may pick up a few exploritory shares on any significant sell off. EKS