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

To: E_K_S who wrote (48217)	6/2/2012 2:53:22 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78750

E_K_S - you have been very right so far in terms of keeping away from the market and lowering your target prices. I thought CLF looks cheap around 60$ and now we are close to 45$. one would have done great shorting everything that was mentioned in this thread and in particular the stocks I have been posting about. I think I'll put some remaining funds towards industrials rather than material stocks for diversification. Some European industrials trade at trough valuations close to the 2008/2009 low, despite much better fundamentals.

To: E_K_S who wrote (48217)	6/5/2012 1:28:27 PM
From: E_K_S	Read Replies (1) \| Respond to of 78750

Cliffs Natural Resources Inc. (CLF) -NYSE - Closed out tracking position for small gain Sold my CLF tracking position for a small profit (2% for 48 hours). Just not comfortable with the recent price action (more sellers...new 52wk lows), world economic slowdown would reduce iron ore & coal, long term deflation brings all commodity prices down so a case can be made for a lower value of the resources in the ground in the out years (ie 7-10 years). I plan to move the proceeds into Government Properties Income Trust (GOV) as this REIT generates excellent FCF primarily from local, state and federal agencies. These agencies have the taxing authority to raise the necessary monies to pay rent. Even in an extended deflationary period, governments need facilities and can tax entities (and/or charge fees) to generate their revenues. I am moving more towards a defensive posture in my long term view and see an extended deflationary period a real possibility. Therefore, my "value" buys must also look to maintaining current purchasing power through having little LT Debt and assets that are shielded from any deflationary melt down. Perhaps it's time take another look at the food and AG sector. Everybody will need food and water. Company's that own these types of assets may be the real value buys now. FWIW, Seaboard Corp. (SEB) -NYSE Amex continues to make new highs as the rest of the market sells down. finance.yahoo.com I started to notice this divergence beginning January 2012. EKS