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

To: Madharry who wrote (41683)	3/10/2011 3:22:16 PM
From: Spekulatius	Respond to of 78752

I don't buy major banks, i buy the small one very selectively. most stuff is too small to even mention here, like my adventure with FMNB.OB (I still like and own this outfit but have reduced my position by about 1/2). I sold out of HCBK because of disclosures regarding interest rate risk and trouble with the OFS. I never argyue with a regulator so I sold (at a loss). I do think that banks like BK with very little risk exposure are worth a look (I own quite a bit). Insurance companies like TRH, ALTE, trade at <0.8x tangible book which is a steep discount to historical valuations of 1.2x. this is where I see straightforward values ( recently added TRH). Boring day, i see nothing to buy or sell. If we get at 15-20% haircut, which i think is well in the cards given the crosscurrents, then it's going to be a different story. Let's see - Greece was downgraded yesterday (doesn't matter much), Spain today (matters a little more), Crude above 100$ (matters even more still), Gaddafi bombing his people and his oil ports ( does matter since Saudi's have spare capacity) and Saudi's shooting their own people (ohh wait a moment...?). Today is an exception but i have never seen a market so ignorant of macro risk. FWIW, US downgrade is overdue and only a matter of time. i don't it's going to stop with AA either. Of course i do not know if it matters or not for the stockmarket LOL. Maybe it's a good idea to keep your silver and gold stuff, as much as I hate to admit it.