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

To: E_K_S who wrote (2038)	7/24/2012 3:52:12 PM
From: Sergio H	Read Replies (1) \| Respond to of 4720

Sorry for this post: http://www.siliconinvestor.com/readmsg.aspx?msgid=28287455 In reading it now, its not what I meant to say. Not embarrassed about making the wrong call about market direction, but wanted to apply TA discipline to value stocks. I really am not too sure what to do with the sector issue. One thought is to make the categories wide so there will be less categories and the other is to be as specific as possible and therefore have more sector categories. I'm leaning more on the latter because each stock will stand out on its own and not be compared with stocks that really are not in the same sector. So, if its ok with everyone, I'll re-arrange the sectors into a more representative fashion and if there are still issues, let's discuss it after all of the picks are in.

To: E_K_S who wrote (2038)	7/25/2012 8:03:02 AM
From: bruwin	Read Replies (1) \| Respond to of 4720

I think I can say, with a great deal of certainty, that I’m not always right ! Apart from anything else, I put forward that piece on long term debt to see if others saw it the same way that I did. After all, Buffett is not the author of that book. However, one assumes that David Clark, especially, did his homework well enough to ensure that he got his facts right. ”If companies can not show a 3x or 4x Net annual Income to LT Debt now, when interest rates are near zero, just how will it look when interest rates revert back to normal levels (4-5% nominal rates). Companies should be generating huge cash flows and be paying down their LT Debt.” I think you’re absolutely correct, E_K_S. Of course, there may be those who would argue that, if one can get a better return with someone else’s money, over and above the cost of that money, then that may be the way to go. However, at the end of the day that’s still Profit – x, plus the risk of a future cost increase if rates rise. Using one’s own cash, if one had it, is Profit – zero. I suspect, though, that there may be a "break even" point somewhere ..........