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

To: grahamcracker who wrote (556)	4/26/2012 2:25:27 PM
From: thatsnotluck	Read Replies (1) \| Respond to of 1876

<<Lured into a purchase at a 30-year low by a relatively strong balance sheet? Suckered by a so-called value-trap siren call?>> my concern as well. i have certainly had my share of value traps over the years. that is why i generally prefer things with negative book value like ATPG and MNKD. no way those could be value traps. :-) i also have a few others that have interesting metrics, but possibly terminal businesses, such as PBI, HAS and AM. RSH is small, PBI very small and the other too not quite as small position sizes for me. probably around 7% or so for the bunch in total. looks like AM could end the day being over 3% all by itself.

To: grahamcracker who wrote (556)	4/26/2012 2:33:28 PM
From: Covenant	2 Recommendations Read Replies (1) \| Respond to of 1876

I'm not sure if this fits well with your style or not, but when I'm dealing with potential value traps or other companies with business models that are not executing well, I try to put myself into customer shoes. Retailers are ideal for this approach. If I was considering RSH, I would go into one of their stores and spend some time looking at all that they sell, paying attention to selection, pricing, and quality. I'd also be attentive to how many other customers were in the store and whether their needs were being met (PIR had 2 other customers in the store when I went in). I haven't been into a RSH in years and cannot imagine why I would want to buy anything there. How about you? Why would you go to RSH? In fact, why would anyone want to buy anything at RSH? If you don't have answers to such questions, or you don't like the answers, why invest in RSH?