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

To: Spekulatius who wrote (63451)	3/16/2020 7:16:37 AM
From: Nya_Quy	Read Replies (1) \| Respond to of 78778

WEHB is very illiquid, I guess because of that 66% holding by WEHA. Furthermore, to be honest, I am not comfortable shorting stuff in general at this stage of my "investment career", to put it grotesquely. What you are describing happens more often than you would think. I do agree that the WHA.AS valuation seems extreme, but shopping malls trade a low valuations everywhere. I know of US Reits (not shopping malls) that trade at <50% of NAV (pre crisis of course, I don't think there are any bids right now) , with solid finances and they aren’t even malls. VNO is one I own in small quantities. Does VNO also have something in their portfolio that is already priced by the market? That is how I know that the French and Dutch cash flows are given a value of zero or even negative. Be safe, -- Nya --

To: Spekulatius who wrote (63451)	3/16/2020 10:14:46 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78778

Agree with Speculatius. A disconnect like that happens many times. I've never had much success playing these, and so I avoid looking at that as a specfic investment opportunity. Had I made these a relative trade that might might have helped me and changed my opinion, but I don't like to short, so I didn't do that. Can't remember but maybe it was that the spread stayed longer than my patience; or the spread closed but at a lower level for both stocks so it didn't work out for me; or something else. Some people do well with these -- maybe because they or someone else comes in with big money to force management or the market to close the gap.