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

To: ValueGuy who wrote (43603)	7/29/2011 10:24:52 AM
From: Dan Meleney	Read Replies (1) \| Respond to of 78702

DD I averaged up a little more today.

To: ValueGuy who wrote (43603)	7/29/2011 10:35:02 AM
From: Spekulatius	2 Recommendations Read Replies (2) \| Respond to of 78702

Re cement - good proxies are Lafarge (LFRGY) and HOLCIM (HCMLY). Worldwide operations and they sell the entire range of construction products. the well known CX is heavily indebted and would not be an investment choice for me. Why put toll roads and cement in one basked - both are completely different business?

To: ValueGuy who wrote (43603)	7/29/2011 11:33:34 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78702

OT - You are proposing to look at underlying stocks and that's really the way to go. However, if someone decides to buy the ETFs, here are some caveats about small specialized ETFs. - If they remain small and unpopular, they get closed - Original company percentages in their portfolio are usually skewed in market-cap weighed fashion, which may lead to ETF being equivalent to 2-3 biggest holdings - Even if original percentages look fine, if ETF grows, they may have trouble maintaining the percentages of their portfolio. Assume that they have 1% weighting in a small cap from India. If ETF grows from 10M to 100M, they have to increase their Indian stock holding 10 times! This might be impossible due to small float, ownership restrictions, etc. Even if it's possible, it might be that the ETF is driving the price up by buying the stock (and it would crash if/when ETF tries to liquidate, since no one else would support that price). So caveat emptor. :)