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

To: Bocor who wrote (41074)	1/17/2011 1:05:06 AM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78719

LPHI: What do you think about considerations in this article? seekingalpha.com IMHO the author makes good points. LPHI is not a clear fraud, but the transparency is lacking. Since the valuation is low, the stock will certainly move a lot either to upside (if no big issues/lawsuits/regulatory rulings appear) or to downside (if there are issues/investors running away, etc.). I'm still not sure we can figure out upside/downside chances and ratios to decide if investment is worthwhile. I'm sure that either bulls or bears will make a lot of money here. Maybe both depending on timeframe. Certainly not a flatliner stock.

To: Bocor who wrote (41074)	1/17/2011 9:56:21 AM
From: MCsweet	Read Replies (1) \| Respond to of 78719

LPHI, I looked at this one awhile back. It was a cheap valuation, but I decided not to buy it. The reason at the time was a management and business model that appeared to me to be "ethically challenged". Here a few general points: If management doesn't run a good, honest business it can always be subject to legal and regulatory risk. The liabilities of those are hard to ascertain, so it is hard to say how much "margin of safety" there really is. If management is willing to cheat their customers, then they are probably willing to cheat you too. Just something to keep in mind. I'd rather not support business that I view as unethical. I have amassed enough wealth (and still find enough opportunities in companies that actually do good) that I can pretty much avoid companies that I dislike. This has probably cost me some money recently in that I avoided payday lenders, whose economics are great, but who I think are bad for their customers. Money isn't everything, though. MC