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

To: E_K_S who wrote (46313)	1/25/2012 1:58:57 PM
From: Sergio H	Respond to of 78748

I enjoy your posts and appreciate your opinion. I thought it was interesting to note that the list was made up of stocks hitting or near new highs but undervalued relative to their GN. I really like your strategy of having stocks ready for when you want to reload or rebalance your portfolio. Capturing undervalued GN and reviewing for tangible book value are a good start as is setting a max for acceptable debt to earnings ratio. I don't agree with eliminating stocks that are at or near highs since this does not imply that the value is shrinking. Stocks could be hitting new highs along with improving metrics similarly to stocks hitting new lows could be experiencing a decline in value metrics. New highs do not prevent higher highs and new lows do not indicate a bottom.