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

To: Sergio H who wrote (49724)	10/10/2012 1:26:55 PM
From: NikhilJog	1 Recommendation Respond to of 78702

Obviously i disagree with Paul. I can partially agree with "I'm interested as long as the earnings don't seem like they will drop in those future years." If earnings don't drop, that does interest me enough to take a look at that name. Secondly, i never said looking at low p/e is a value trap. The question I posed was " just bcs something has a p/e of 4x, does not mean its a good buy because. it can very well be a value trap". - so Paul misunderstood what i was saying - but i guess thats nothing new lol

To: Sergio H who wrote (49724)	10/10/2012 3:07:18 PM
From: Paul Senior	1 Recommendation Read Replies (2) \| Respond to of 78702

I'd be looking at structural changes in demand to where I fear company earnings and/or stock won't comeback, either permanently or for a very long time. Judgment/opinion call on my part. Some possibilities?: WDC/HPQ/PAY/VOXX: obsolete/wrong technology TM: Refusal of Chinese consumers to buy Japanese products, esp. Japanese-made cars APOL/DV: For profit educational companies BTU/WLT: Coal producers SVU: Grocers competing with Target/WMT/Ethnic chains CACI: Government (defense) contractors Various: Life insurance companies Various: Payday loan/loan companies