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

To: bruwin who wrote (97)	9/14/2006 10:02:11 AM
From: jsabelko	Read Replies (1) \| Respond to of 4080

Bruwin, Likewise I just want to discuss and I agree with your defn below for EV as that is exactly what it is. I think what I'm not communicating well is I'm using EV/ebitda. That is a RATIO to value the stocks. I'm not just using EV. Your example focuses on EV alone and I'm sure is true but by using EV/ebitda and looking for low ratio you can help spot the exact market inefficiencies you describe. My saying I have a 1-2 year holding time was not to emphasize this was long but rather short. I said this in reference to my not focusing on efficiency numbers such as ROCE as I agree that if one is looking for companies to hold for a 5-10-15 years then it is a MUST to have good efficiency numbers as these high quality companies should win in the long term. I however am in general looking for special situations and market inefficiencies or more likely just failure to recognize yet (company change, merger, new technology) that presents a temporary value opportunity that I believe will "correct" or become clear to the market over 1-2 year period and then get "properly" valued. Thanks again. Interesting discussion. joby