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

To: E_K_S who wrote (60047)	11/7/2017 5:55:38 PM
From: Lazarus	Read Replies (1) \| Respond to of 78464

Ha, I made a small add as well at $17.73 I have two positions though... the small position I'm building in Roth IRA and a larger trading position that is upside down and frustrating me. Thanks for that link!

To: E_K_S who wrote (60047)	11/18/2017 4:46:53 PM
From: Graham Osborn	2 Recommendations Recommended By E_K_S Mario :-) Respond to of 78464

Re: value traps I usually define a value trap as a company with flat or declining sales and declining shareholder equity, often with a heavy debt load and/ or leases. Kind of the company equivalent of a tree that is >50% dead. M and GE fall in this category, among many others. Since intrinsic value is declining, you are essentially depending on your assessment of present intrinsic value as opposed to someone else's. Time is the enemy of such a business, and so longer holding periods are more likely to produce losses. Like trees, companies have life cycles: seedling -> sapling -> mature -> ancient -> snag. I only play in the sapling/ mature category. I think of value traps as falling in the ancient/ snag category. You may squeeze a bit more life out of them, or they may get blown over in the next thunderstorm. I find them exceptionally difficult to value since of a lot of their value is tied up in short-term eventualities.