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


To: Nya_Quy who wrote (62931)12/1/2019 3:16:05 PM
From: bruwin  Read Replies (1) | Respond to of 78471
 
"The company in its current form is most probably toast next decade .... because its price has been pushed down to such a low level that even the slightest bit of cautious optimism ...."

Ok, so you're in the "cigar butt" business .... the last 'coupla' puffs before it's just ash ....

And you may be more in tune with "Speculating" rather than "Investing" ?

And yet you put it forward at a "Value Investing" forum.

But there again, you're not the first person on this board who has proposed a company that has shown similar LOSS-MAKING tendencies.

But this board is supposed to be advocating Ben Graham type investments. And that has often puzzled me because I have to wonder what some folk regard as Ben Graham type investments.

From what I know of Ben Graham's original philosophy he was looking at companies whose share price was much lower than its Book, i.e. Liquidated, Value. But that didn't mean that he would invest in companies that were losing money on a regular basis.
In fact Graham had one or two financial ratio targets that he preferred companies meet or exceed.

I understand that he was looking at companies whose share price was low because of circumstances within the market that were depressing share prices. In other words the financial fundamentals of the company were sound, but that was not adequately reflected in the company's share price.
Therefore there would come a time when investors would realize that the company was under-priced and the share price would go up accordingly.