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

To: E_K_S who wrote (44614)	9/27/2011 12:36:42 PM
From: Paul Senior	Respond to of 78666

EKS. Okay, I'll follow you. Presuming today's relatively large % rise in BG isn't sustainable in the current stock market environment, I'll sell BG and attempt to reenter somewhere under $60. Meanwhile I'll just somewhat hedge that with a small buy of YARIY now. finance.yahoo.com

To: E_K_S who wrote (44614)	9/27/2011 3:44:18 PM
From: Spekulatius	1 Recommendation Respond to of 78666

re BG, real - the devaluation of the real would help many export oriented companies with business in Brazil. Since they incur cost in real but sell in US$ the high real impacts profit margins. The other company impacted even more is Vale. i believe a lower real would do wonders to Vale's profit margin, since almost all their product (iron ore and other materials) goes into export. I have been somewhat reluctant with repect to BG because they have sometimes high earnings volatility, but then I really see a company that is retooling itself after the sale of their fertilizer business, trades below tangible book and probably far below replacement value of their assets and at a fairly low PE. Furthermore it helps to produce and move a product that never goes out of fashion and where demand is very likely to rise, worldwide. This kind of makes it easy to buy BG versus a bank stock that may trade at discount to tangible book as well, but has some crappy assets and a crappy loan demand to deal with and trades with an equal or higher PE.