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 : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (1816)	7/11/2012 7:45:20 PM
From: Sergio H	Read Replies (1) \| Respond to of 4719

Haugen's view was that stocks of lower volatility had the highest appreciation. I don't think he said that a stock can't be a growth and value stock at the same time. Our format is that the top ten vote receiving stocks will be our portfolio. There won't be any against votes. You just recommend the stocks you like when we are ready to vote.

To: tyc:> who wrote (1816)	7/11/2012 10:11:03 PM
From: The Ox	4 Recommendations Read Replies (3) \| Respond to of 4719

The problem with comparing PEs, PSs or other ratios that differentiate RIMM with AAPL is that AAPL sales are growing and RIMMs are falling. AAPL sales will go up nearly 50% this year while RIMM sales will fall by 45%. AAPL will generate $45 per share while RIMM is expected to lose money this year. Companies that are losing money and have massively declining sales are not traditionally considered to be good values. Buffet looks for solid companies selling at substantial discounts to fair market as targets. Maybe a company like RIMM would be attractive at ten cents on the dollar given the current metrics but this would be unlikely since they are a technology firm. If RIMM can start to show a reversal of the declining sales trend then they may, eventually, become a value play. Losing $6 billion in sales yoy makes it very, very difficult for me to see them as a value play. Add in current expectations for losing nearly $2 per share over the next 2 fiscal years as another straw that's breaking the camel's back for this observer. Jmo Respectfully, TO