Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sergio H who wrote (46408)	2/1/2012 3:14:44 PM
From: NikhilJog	Respond to of 78549

Absolutely. The point is in trying to figure it out ahead of time. its not that simple to define. As for "potential pitfalls. ", thats also a catalyst. Catalysts are not something that will only drive the stock up. For example - leverage can be a potential catalyst for a company to file for chap 11 or be short at. It of course should be looked at in addition to the fundamentals. For example - TYL -->I wrote about their JV with MSFT in Oct-2010 in addition to some other fundamental drivers and valuation. Stock was around $19. Things came together they way I saw it and they announced the JV in a conference in Feb/March of 2011. " It was in their SEC filings" - Should have been priced in? Look where the stock trades now - its almost around $ 34. On ofthe other hand, you can invest in MSFT and its been flat for almost 11yrs, give and take, except the dividends. Therefore i spoke about " value with catalysts". Its very important to understand that i am not just talking about catalysts. And as i said, please , no one should take what I write personally. I love these discussions and I get really great reads on this threads and learn a lot in the process. HOWEVER, no one should discount something without having a complete understanding of it.