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

To: E_K_S who wrote (3717)	6/29/2014 10:06:43 PM
From: Spekulatius	Respond to of 4719

I am aware of SNE entertainement devision and I think there was already an activist investor pushing for a spinoff. However, this is a Japanese company, so tough luck with that. DISCA is not necessarily a value stock, but I don't think it's outrageously valued either. The PE for example is roughly inline with the market, but this is a company with way above average business economics, so in that sense, it can be called a relative bargain. The problem, with the Graham number is twofold - first it penalizes companies with high ROA and second the book value that goes into the Graham number is path dependent, so the same business with exactly the same economics can have a different Graham number, which does not make any sense from a valuation point of view. I don't use the Graham number myself because of these shortcomings. I think it only may make sense, when no intangibles or goodwill is on the balance shoot (or both are eliminated).