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


To: The Ox who wrote (1819)7/11/2012 10:40:20 PM
From: The Ox  Respond to of 4719
 
Let me add another thought. RIMM may be an excellent rebound play or come back stock. Even so, I'm not sure I see it as a value play in the traditional sense. Most value plays are different from turn around plays, at least from my view. I welcome other opinions in this area and hopefully a consensus can be reached by the thread!



To: The Ox who wrote (1819)7/11/2012 10:45:52 PM
From: tyc:>  Read Replies (1) | Respond to of 4719
 
An answer to your post lies in the definition of "growth" and "value".

Haugen's definitions are simple:

Value: A value stock is one whose earnings are expected to grow at a below average rate.

Growth: A growth stock is one whose earnings are expected to grow at a rate above average.

It is, of course, higher expectations that lead to popularity and higher p/e ratio's.



To: The Ox who wrote (1819)7/12/2012 9:03:00 AM
From: Sergio H  Read Replies (2) | Respond to of 4719
 
Great post. We have been having this same discussion on another thread. My position is that if a stock is selling at a discount, what is the reason and can it be overcome. I don't think that you can rely solely on metrics. Same for relying solely on a chart without looking at the underlying fundamentals.

I am glad that you found your way over to this thread and look forward to your selections.