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

To: Mark Marcellus who wrote (28118)	9/18/2007 2:25:54 AM
From: pcyhuang	Read Replies (1) \| Respond to of 78731

>traditional value matrices" would be the way to go. Mark: The quote you cited: "Since many value stocks are trading near their 52-wk lows, we need to add certain matrices, other than the traditional value ones, in finding the right candidates to be the truly big winners. (The bold letters are intentionally added). Please also note that I have nothing against the traditional value matrices, but I am only suggesting the addition of several other ones at this juncture of the market cycle. One process that is useful in identifying such potentially big winners is to ask yourself "how is this stock unique versus its peers?" For example, NFI's unique qualities include the following: 1. It is the only company in the depressed mortgage industry that has done a 4:1 reverse split. So a put with a strike price at $10 is really a put on pre-split NFI at $2.50. 2. More than 90% of NFI's float has been sold short by the pessimistic players. 3. NFI has been on the NYSE "Threshold Securities" list for more than 30 consecutive days. Starting Oct. 15, the SEC's new regulations dealing with "Threshold Securities" will cause a forced covering of all such naked short sales. 4. NFI is backed by the Wachovia Bank and Massachusetts Financial. 5. In recent sessions, the trading volume of NFI ranges between 10 - 20% of the total number of share outstanding. This type of heavy turnover usually signify some important developments. Thinking about the uniqueness of a situation would allow the investor to limit the number of issues in his portfolio without bulging into hundreds or even thousands of issues. The overly large number of issues in a portfolio will just result in mediocre performance. pcyhuang