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

To: MCsweet who wrote (53306)	2/3/2014 1:45:22 PM
From: deeno	Respond to of 78486

"management performance usually reverts to the mean as well." Yes sometimes management is judged by current stock price. Goats to brilliant and back again. Alot of times stunned analysts inflict retribution over covered managements lack of understanding how analysts get paid. If analysts dont feel like they are "in the know", it must be poor communication i.e. bad management. I think DGX is the right call. disclosure. I have very few rules for trading/investing. However one that I try very hard to follow is not buying a stock that falls through the year low. I just sit on my hands for a couple weeks. That strategy has rewarded me more often than hurt me. I don't mind missing some upside to get into a good company versus guessing where the bottom is. I'm itching to buy and I think you got a good price.

To: MCsweet who wrote (53306)	2/3/2014 2:53:46 PM
From: Paul Senior	1 Recommendation Recommended By MCsweet Read Replies (1) \| Respond to of 78486

INGR. New low. I'll hold but won't now buy more . RCII. I'm considering. Selling at stated bv. Plus stated bv has been increasing. Otoh, I'm not sure about the viability of the rent-to-buy business model. IBM. Adding a few more shares. Forward 12/'15 p/e of 8.7 (per Yahoo's 22 analysts) seems to me too low for the shares to be sustained there.

To: MCsweet who wrote (53306)	2/3/2014 7:42:35 PM
From: Mattyice	Read Replies (2) \| Respond to of 78486

This is to Deeno and McSweet, thanks for sharing your idea on DGX. You both make a pretty simple compelling case for it in the value sense. I took a look at it this afternoon and on a valuation basis, FCF, FCF yield, EV, PB, some of my other stuff i look at (have written on it in the past) to get a feel for or a 'blend' of what this puppy is worth. There is hardly any red flags other than some pretty subpar revenue growth. I like that they are paying a dividend and buying back shares at such a reasonable valuation I think i am going to pick up some shares, or maybe wait a few weeks for this thing to settle out. As far as what is undervalued, i'm continuing to buy up gold miners. I think its a once in decade opportunity to buy some really cheap assets at huge discount. I have been meaning to write a post up and have been working on some valuations to throw together, but on the other hand the numbers are so bad that its hard to even make it look compelling. I'm hoping this nerve wrecking instinct that i am having to fight to avoid the whole group will pay off at some point. I have been building a position since late last year. I currently own ABX, AU, AUY, GG, NEM, NG, RIC (hat tip EKS). I own some Jan 16 $40 Calls in NEM (I like leaps - just picked them up this week for about .55) I am pretty much done buying as of now as it is now close to 30% of my entire portfolio.. I wouldnt mind owning a few more smaller miners if someone could make the case for them. There seems to be some interesting prospects in copper, potash, and other mining companies. I have been doing research but just not sure i'm ready to buy them. Currently looking at SQM and POT. This is my idea of value, just going after some stuff that is truly hated. Matt