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

To: anializer who wrote (34665)	6/1/2009 4:39:25 PM
From: Wallace Rivers	Respond to of 78659

Maybe fave is not the right word. ABT is followed by several on the thread, and owned by several, me included. Probably doesn't fit the classic value metrics, but is down toward the low end of its 52W price, offers a better than average yield, and is one of the big dogs in its industry.

To: anializer who wrote (34665)	6/1/2009 5:24:21 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78659

If a key criterion for purchase is always going to be discount to tangible book value, then of course, there will be some wonderful companies that will never be bought at any price. PG with negative tangible bv or EMR with negligible tangible. ABT, imo. And otoh, just because a company sells below tangible book value, that might provide only a problematic margin of safety. So for example, there are some people who worry that an excess number of ships are being floated and that many of the current ships could be or should be valued at scrap, which could be below calculated tangible bv. ============= Not that everybody would agree that my examples are wonderful companies, but they are pretty good. And it's okay too imo if some sector or businesses are skipped such that a person's portfolio picks up other stocks that have that margin of safety of being bought below tangible book value. -g- Of course for me, I'm not one to want to skip a sector or an opportunity if I can understand it.