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

To: Rainmaker888 who wrote (39449)	9/28/2010 12:08:43 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78744

I'd say your analysis is pretty messed up. You cannot consider "long term investments" to be cash equivalents. They are not. They could devalue significantly if the equities they own drop a lot. For example, their TSTR stake can be (is?) a toast. And IMHO it makes no sense to add "business value" to "liquidation value of assets". What does that mean in real world at all? Is that like adding sales to equity and calling it market cap? Either evaluate the company based on earnings or evaluate it based on balance sheet, you can't just arbitrarily mix the two. On the philosophical side, investment in Echostar can only be made as a faith investment in its majority-control holder. If you believe Charles W. Ergen is a great manager and his goals are aligned with minority shareholders, you buy. If you don't believe it, you don't buy. In this situation if he wants to screw you, he has total control to do it in 10 different ways before Sunday.

To: Rainmaker888 who wrote (39449)	9/28/2010 12:56:31 PM
From: Paul Senior	Respond to of 78744

Echostar. If I remember right, what soured me on Echostar was that these satellites they own or lease, they fall out of orbit eventually. More quickly than management - or stockholders anyway -- were led to believe. So when management announced a sat would unexpectedly have to be replaced, the stock fell too. Not sure how this is in Ecostar's depreciation account these days. Maybe too there's new or better prepared management and company balance sheet. Regardless though, given my past experience, and my lack of knowledge about satellite replacement costs, I'll not invest in the company regardless of how much cash/investments seem to be on the balance sheet.