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

To: Jurgis Bekepuris who wrote (34016)	4/1/2009 7:11:48 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78958

Jurgis Bekepuris. So you believe the more time spent on dd for a potential stock buy, the better the results should be for the investor who then buys? There's no academic research to support such a view, that I know of. These are days of low-hanging fruit. Anybody who spends a lot of time analyzing something trashy like TRID imo has a poor method for focusing his/her time or has no good method for screening stocks. The stock is either a buy because it sells below cash and may eventually sell above cash, or it will continue to sell below a declining cash hoard as that cash is decimated by management. This is the critical dilemma, and there is no way an outsider can determine what management will do by spending a lot of time analyzing the company. For me, I bet on a package of these companies that sell below cash. Some will decline much more, and some will see their shares rise quite a bit -- such has been history, anyway. I am betting there will be gainers and the gains will outdo the losses on the others. A decision for me regarding TRID that takes not more than two minutes. Whether I was wrong to have bought TRID and whether the person analyzing was right to not buy, that is an outcome we do not yet know.