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 : SiliconInvestor All Stars Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (902)	6/21/2007 2:29:57 PM
From: Dale Baker	Read Replies (3) \| Respond to of 1718

When the hot money is running into large caps with PE's under 20, the downside room to "crash and burn" is limited, as long as the underlying business doesn't disintegrate like the homebuilders. That's the chief factor that most SI amateurs don't grasp, or even want to look at. They want to say housing bust=consumer bust=credit bust=market bust. The world ain't that simple by a long shot. But anything else would cloud their gleeful scribbling.

To: John Vosilla who wrote (902)	6/22/2007 6:56:04 AM
From: Rarebird	Respond to of 1718

>>Cash flow always rules in the long run.<< Yes, as long as the company uses the cash wisely to pay dividends, fund more research and development, or acquire other good companies and expand into new markets. A low PE to growth ratio (PEG) and a low debt to capital ratio are also essential ingredients for a good investment. Do you know a company that is so dirt cheap, that its growth rate (12%) is almost double its PE, with a great balance sheet, good management, that even most permabears would embrace it because earnings are strong? Want to invest in a Cash Cow? Look at ACGL. Disclosure: Long the stock. PS Sometimes you just got to buy the company (Value) and forget about the bigger picture.

To: John Vosilla who wrote (902)	6/22/2007 5:45:27 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 1718

I have long said that if you find a good investment, invest (and lever it up if it's really good). Your money should always go to the areas where it will be treated best. Today, that means equities and commodities and not fixed income or housing. Likewise you will see both equities and commodities crash simultaneously as a result of HIGHER interest rates (at least 7% in the US at this point unless rates move past 6% overnight). That would also probably be a good time to buy bonds and...real estate... Rinse, repeat, rinse, repeat...