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

To: Paul Senior who wrote (44699)	9/30/2011 6:46:42 PM
From: Difco	Respond to of 78667

Paul, These are all excellent points, which only solidify our joint opinion of the company - I hope that more people would ignore the long-term and we can benefit from even lower prices in the short-term. I was thinking about the impact of the euro woes: If Germany would stick by the European Union and help the other states and if George Soros' piece in the FT today is correct, an increased function of the ECB would result in quantitative easing and lower euro, which in turn would lower costs in the euro zone, thus making the auto sector more competitive. On the other hand, the less likely scenario of EU breakup would reinstitute the Deutsche Mark, which would have higher valuation than the euro, thus we would benefit from the currency appreciation of our positions. Both scenarios seem possible and there's something to be gained regardless of what happens - I guess that combined with your points below contribute to the formulation of margin of safety.