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

To: Spekulatius who wrote (40703)	12/19/2010 6:56:12 AM
From: Madharry	Respond to of 78753

interesting that you say that, many value investors continue to believe that their shares are pretty cheap. Barrons has an article about savings banks being unusually cheap and sallie mae as well, but when i researched sallie mae it seems to be full of risk and questionable management decisions. one of the most interesting comments i read was from someone who pointed out that sallie mae really cleans up when a student defaults on a govt guraranteed loan because then sallie mae collects 100% on the guaranty and then turns into a collection agent getting as much as 1/3 of the funds eventually collected from the defaulting student. if this is true i would certainly be leery of sallie mae servicing my student loan. as an investor the 50-1 leverage is pretty alarming. On top of that I read that over 9% of their private student loans are in default now. if there were secured bonds though that would be another matter. The macro events continue to be interesting, I wish i understood the mechanism for expanding euro money supply better. its funny to see all those heads of state posing for pictures, smiling , when they are facing such serious problems between debt crisis, austerity programs, and civil unrest. I predict that monetary expansion will continue in 2011 and that should be good overall for the stock market and commodities as stores of value. I also wonder what the ramifications will be of china being upset with the united states and bernanke for their monetary policy which is contributing to the increase in commodity prices which china abhors. When you say cash> what exactly do you mean?

To: Spekulatius who wrote (40703)	12/19/2010 2:31:21 PM
From: Grantcw	Read Replies (1) \| Respond to of 78753

Re: The Market Yeah, some stocks are getting frothy, I agree. But, I guess I'm not feeling like there aren't value plays still out there as I'm still finding value in Large Caps mostly in Energy and Tech. But, other than that, I agree. And even in these large caps, I don't have over 10 that I'm really confident of right now. I'm not finding value in many other places, hence my move to trying to buy companies with good premiums on calls to start a covered call position with good risk rewards. At this point, I'm thinking that's a better play than to continue to stretch into questionable 'value' stocks and/or to just keep pushing a lot of money into the few value stocks I'm confident in and create a really non-diversified portfolio. Thanks, cwillyg

To: Spekulatius who wrote (40703)	12/19/2010 3:17:46 PM
From: Shane M	Read Replies (2) \| Respond to of 78753

Spekulatius, I rose some cash Friday just based on a hunch. I had a day off and was reworking my portfolio. I wasn't seeing any good "deals" that demanded my attention, and there's just an increasing lack of fear anywhere. Bearish cases on Seeking Alpha are much more muted than they were back in August or so when they were thick. I realize there's still lots of cash on the sidelines (based on all the mututal fund money that fled equity to bonds), but "long" is feeling easy right now. That feeling raises my alerts a bit. High cash levels are not unusual for me, but nearly 50% cash now.