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

To: E_K_S who wrote (32436)	10/12/2008 12:44:50 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

OT - I think the European for once have a better approach to stabilize the market: Simply inject capital in the banks: GB: 50B pounds Germany: 135B Euro GB also have a State guarantee for interbank loans. I think the EU as a whole will approach this the same way. This can all be done at once over the weekend, while Paulson still is setting up his 700B$ bailout program where the first purchases are probably still a few weeks out. He does not seem to grasp that this problem has outgrown his financial engineering. He should resign and go to work again at Goldman Sachs (Sucks?) marketwatch.com{860F0BB3-4CCF-4693-9F44-9A811F9EA098}&siteid=yahoomy

To: E_K_S who wrote (32436)	10/12/2008 9:40:15 PM
From: James Clarke	1 Recommendation Read Replies (2) \| Respond to of 78753

MGA was a very nice forced liquidation a week ago. Went lower in the carnage but the valuation and balance sheet are very favorable for perhaps the best company in the auto parts industry (I know, yuck). I'm not sure the last time I've seen a cheaper valuation on a mid-cap stock. Half the market cap is cash and it is trading at an extremely low enterprise value/sales and last we know was still making good money. With the problems in the auto industry, this is the one supplier I know of who can (and does) build whole cars. And not Yugos. They build the BMW X3 for example. The industry may go more and more in that direction. Unlike CHK, this was not the CEO selling, this was a Russian who took a 20% ownership position in the company last year and got a huge margin call which took the stock to 38. In my view his ownership was a negative, so ironically, the stock is MORE attractive to me with him gone. Ya ask for a little volatility a couple years ago...this is like praying for some rain and getting Katrina! Anybody else have examples of margin forced selling? These are very interesting to me too. Good luck all!

To: E_K_S who wrote (32436)	10/13/2008 7:54:43 AM
From: Madharry	1 Recommendation Read Replies (1) \| Respond to of 78753

a ex-colleague told me decades ago that he learned from bitter experience not to buy stocks on margin. times like this bring that lesson home yet again. interactive brokers recently announced that on small cap stocks they were moving from 50% buyin margin and 25% maintenance to 100% margin requirement. that no doubt contributed to the free fall. It must be a pretty bad feeling for a billionaire ceo to get margin calls even though he's still got more than enough to live on. I expect we will see a lot of personal bankruptcies and credit card defaults now as these margin calls play out in ordinary peoples lives. People postpone the inevitable by stopping to pay mortgages and taking out all the credit card debt they possibly can. One can now obtain multiyear free financing on consumer goods like tv-s and computers. I expect we will see that on cars before too long if not already.