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

To: bruwin who wrote (53406)	2/13/2014 11:12:48 AM
From: Wallace Rivers	Read Replies (2) \| Respond to of 78744

Old friend B&G Foods, ticker BGS, taking a hit today, looks like due to an earnings miss, makes the 52 week low list! It's now on my watch list. Boring business with a nice dividend. Not crazy about the balance sheet, however. On another matter, still own CSCO, something has to give with this behemoth....new CEO, an activist investor, something. I'm certainly not underwater, and have no plans to sell. Shareholders are none too happy with this being dead money for so, so long.

To: bruwin who wrote (53406)	2/13/2014 2:17:56 PM
From: JoJoK	Read Replies (1) \| Respond to of 78744

The accounting of assets isn't a reliable measure of value. If you think about it, the value of your assets is related to the owner's earnings that can be generated from the assets. As a business owner, the benefit you receive is the free cash flow of the business. If a stock is an equity stake in a business, then logically, the fair price for a stock is the present value of future cash flows, discounted at an appropriate rate. Value investing is about buying a stock at a discount to intrinsic value.