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

To: E_K_S who wrote (2124)	8/2/2012 8:52:10 PM
From: Sergio H	Read Replies (1) \| Respond to of 4721

I'm ok with dropping PM on the basis of its product. I second your idea of dropping stocks that have less than five votes. That would leave 17 if PM remains a candidate and 16 otherwise based on the voting tallies so far. This may change. I think we need to wait for Ox to finish his write-up(s), give a little time for more voting and then whittle down the top 15-17 picks to 10. Before we go further......Does anyone disagree with this so far? I would like to incorporate all of your suggestions once we get down to the final candidates. The elimination could be done several ways: (1) limit a certain number by sector, (2) eliminate by size and/or market Cap, (3) eliminate by risk/reward ie) expected total return if held three years and then annualize that number and rank the group, (4) sort the group by 5 year PE or many other approaches. Or selectively choose one of the candidate stocks to eliminate by making an argument against. You could compare similar candidate companies like F & CMI choosing the one to keep and the one to eliminate and/or just a simply reason to eliminate a stock.

To: E_K_S who wrote (2124)	8/2/2012 10:34:29 PM
From: Spekulatius	Read Replies (3) \| Respond to of 4721

Depending how we look at business lines, I see three stocks related to transportation - CSX, F and maybe CMI could be classified as such. F seems to me by far the weakest in terms of having a moat. Making cars is a tough business, and F is up against formidable competitors like Hyundai, Toyota (emerging from their slump),Honda, BMW, Daimler and VW. I don't see tham being top at anything and if we ever learned anything from Buffet, do we really want to own a mediocre company in one of the thoughest business there is? I do like SPLS as a pick, since they own their category and have a strong internet business and a good valuation. It's the only retail playput out here and well worth a consideration, plus is somewhat contrarian too, which I like. SE may be a short. They make a lot of their money processing liquids and some of their contracts are percentage of proceeds (POP). They lost a significant part of their earnings power in 2008, when NG liquids tanked, because demand from chemical plants went south. This could happen again. I do like the company, but I would not want to own it for a year or so. I think we will see a better harvest dor ADM before the oversupply of liquids is worked out, which may take years.