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 (29875)	1/26/2008 2:23:54 PM
From: Madharry	Respond to of 78763

i think that hundred or two hundred billion dollar number is phony. Initially I thought that it would be a no brainer for the banks and/or sovereign countries to pony up some equity/ capital notes so that everyone stays in business and keeps their AAA ratings. It is ironic in a way that the banks and municipalities are actually in way worst shape than the bond insurers in the sense that if the bond insurers rating decline they go into runoff but they are selling at such a small fraction of their net worth that existing shareholders will do pretty well. On the other hand banks will have to write down more of assets and municipalities will face increased borrowing costs. However I dont see some astute guy from either the investment side or the regulator side acting swiftly and silently to get this accomplished. Instead we have some GS analyst talking out of both sides of his mouth, and a ratings guy who is clearly in cahoots with the shorts trying to upset the apple cart. On top of that the House wants to have public hearings-- what a bunch of morons. Because of this, the one thing im sure of is that there will continue to be lots of volatility in the market.

To: Spekulatius who wrote (29875)	1/27/2008 2:40:24 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78763

More macro stuff i have been tinkering about. My favorite country right now is Taiwan, via EWT. Reasons: 1) low PE (around 12.5) 2) the latest election win of the opposition party may lead to less confrontational course with China. Although Taiwan companies do a have substantial china business links they are in the Shadow of HK and Singapore. I bet this could change. 3) No resource exposure with Taiwan. I do not like resources going into a economic slowdown. I think that Taiwan high tech bias will get the country through a slowdown better Besides EWT, i do own TSM the king of Chip fabs. this stock is also undervalued. TSM has beaten the competitors by a huge margin in terms of profit margins) consistently resulting in very high profitability. Although cyclical, this business has excellent economics.