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

To: gizwick who wrote (55014)	3/6/2015 11:35:00 AM
From: bruwin	Respond to of 78748

I will stick with low P/E and Book value as well as some other risk/reward markers It goes without saying that such must be your prerogative. From what I've read in your posts you've generally done well with regard to your stock market investments, so that indicates that you must be doing things right in terms of your stock selection and timing. I can go along with low PE, but Book Value per share, in isolation, is not an aspect that I, personally, rate highly. But that's just me. If one wants to interrogate the Balance Sheet I'd say that the contribution to Retained Earnings from Net Earnings, and the preferable increasing rate of that contribution, is a better indication of the ongoing performance of a business.

To: gizwick who wrote (55014)	3/6/2015 8:24:48 PM
From: Paul Senior	Respond to of 78748

BBX. You could be quite right about this stock. For me, I find the structure of the company difficult to understand, and I don't understand why the diverse businesses (why have a chocolate business, for example). About 15 years ago we had a discussion here about timeshare accounting. Upshot was that apparently sales (and maybe profit) were booked when the customer signed the sales contract. The surprise occurred the first time times were really tough ==> customers defaulted on their loan obligations -- A vacation timeshare afterall, is not a must have debt to have if you've lost your job and you have a home mortgage and other obligations to consider. So "sales" turned out not to be revenue. It looks to me like BBX now offloads the timeshare buyers' debts through loan securitizations. Although timeshare defaults are low now, that could rise again and come to hurt the buyers of that off-load debt. I don't know the covenants of the securitizatons, but perhaps if there are timeshare defaults, some of that could be pushed back by the securitized loan holders onto BBX. While there may be opportunitiy with BBX, I don't see it as a given -- risky enough to only have a small position. That's in my view. Of course, that the opportunity is cloudy for me -- and others -- may only make the stock more attractive to those who take the time/effort to understand the story fully. (I will assum that is you.)