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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (29099)	11/28/2007 1:21:40 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78744

Maybe it is time again for CAH. I bought once as part of a package, CAH, ABC, MCK. (Have no shares currently.) Now though CAH looks the better bet of the three based on p/sales ratio, which I have used to determine buy points for these businesses. However, there's been a change to some or all of them with their business models --- something about not being so able to use the tactic of buying phama drugs in large quantities when big pharma had price reductions, and then stockpiling the drugs for later disbursement to hospitals. Big pharma apparently has stopped this tactic of managing earnings, and hospitals have got bigger and have been or are, trying to deal direct with pharma co's. Meanwhile the distributors have set up or are strengthening their other businesses or selling them. Result is I'm not so sure using p/sales as a clue for a buy point is still a good bet. Still, CAH with a psr of .23 now, that is unusually low. I will look to re-enter. -------------------- My issue with an ETF like Vanguard's VTV is that it might work out okay, but my already being in some -- many -- of the stocks it has, I have purchased many of them at lower prices than currently, and I really prefer to add more shares or pick more selections when the individual stocks drop. For example, XOM, which is 6.5% of VTV, I am buying now. (Sold position past couple of weeks, and have begun to slowly re-enter, if stock will continue to fall.) I just feel that with something like VTF, if somebody buys, they have to take the good with the bad at the time they buy VTV shares. You may say, "I am pretty glad i don't own C any more." Yet you may STILL own it with VTV. Of course -g-, it's not so clear exactly what will be good and what will be bad going forward. C a winner maybe. XOM a loser. Who knows? That's why there's diversification. etfconnect.com