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

To: bruwin who wrote (62932)	12/1/2019 6:29:46 PM
From: Nya_Quy	3 Recommendations Recommended By Lance Bredvold sjemmeri Truedarkblue Read Replies (1) \| Respond to of 78473

RE: Gamestop Ok, so you're in the "cigar butt" business .... the last 'coupla' puffs before it's just ash .... This is not so much a cigar butt business as the business is not going bankrupt anytime soon. It is just experiencing a rather long down-cycle plus the dividend elimination did its work very well, hence the depressed prices. And you may be more in tune with "Speculating" rather than "Investing" ? I don't need any outrageously optimistic scenario to happen for this investment to pay of: it's about buying an ongoing business with substantial room for appreciation. Of course, assumptions are made about future events, but this is inherent in investing. Furthermore, one of the keys points distinguishing investment from speculation is the fact that my estimation of fair value is independent of today's share price. I am merely using the market (price) as something that delivers bargains whenever I believe to spot one. And yet you put it forward at a "Value Investing" forum. Every investing strategy that treats shares as pieces of a business with an intrinsic value independent of its price is in my book correctly called "Value Investing". Some of the reasoning and valuation techniques, based on (simple) arithmetic and logic, that are used in Value Investing can of course be extended to other types of securities. The core, however, is the idea of value not being equal to price. In other words, I think I have found the right SI thread on which to post ideas. - Nya -