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

To: Paul Senior who wrote (36532)	1/26/2010 2:02:27 PM
From: MCsweet	Read Replies (1) \| Respond to of 78753

GDL, I'd probably stay away from GDL because they have a preferred paying 8.5%. That is too high of a borrowing cost for a closed-end fund in my view. To be honest, I think the $50 preferred is the better deal than the common, even at $53. However, they could call the preferred at any time, so you would be rolling the dice for a few quarters (until you earned the premium in dividend). I know for myself, I wouldn't borrow at 8.5% to invest. In fact, in my new risk-averse state of mind I'd be happy with a risk free 8.5% on a chunk of my portfolio. Of course, their strategy should be much less risky than mine, so it is more justifiable. MC

To: Paul Senior who wrote (36532)	1/26/2010 4:59:21 PM
From: MCsweet	Read Replies (1) \| Respond to of 78753

Comment on PAG secondary, Unless the market has been short anticipating a deal, or there is some great transformative event for a company, a stock will almost always trade down on the secondary announcement, and for a valid reason. It is the law of supply and demand. Supply has increased and the price has to drop to absorb the new supply. IMO, this dynamic tends to outweigh fundamentals in the short term. As the supply gets absorbed by the market, fundamentals take hold again. MC

To: Paul Senior who wrote (36532)	1/30/2010 12:59:31 AM
From: Spekulatius	Respond to of 78753

SUR - i like it and I buy it. I noticed that book value is close to 17$ now and has risen from 4$ in 1999. Not bad to pay 0.8x book for a business with a 10-15% ROE.

To: Paul Senior who wrote (36532)	2/1/2010 11:44:29 PM
From: Spekulatius	Read Replies (4) \| Respond to of 78753

NAVG - specialty insurer Bought some today. They have a good track record. Trading below tangible book value, specialty insurance lines (Marine insurance etc.) and typically operate with a combined ratio of <100%. finance.yahoo.com In for a few shares today and looking to buy more.