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

To: IntoOLEDs who wrote (66374)	2/1/2021 11:30:33 PM
From: Paul Senior	1 Recommendation Recommended By DinoNavarre Respond to of 78752

IntoOLEDs: I'm registered with Seeking Alpha, I guess. Can't remember. They have my email, and they send me lists of their just published articles. I'm not a paid subscriber, so the articles are removed from my access after some time, I believe two weeks after being published. I have asked myself your "why" question several times in earlier posts. Also in past market boom times. If a stock hasn't gone up when it seems like everything else has, does that mean it's just lagging and will catch up? Or if the stock is lagging, does that by itself mean the stock should be avoided? The answer I believe is to forget the laggard stocks. Is that from Peter Lynch? -- his analogy regarding buying those laggards/losers is like "pulling up the flowers and watering the weeds". Regarding SPTN. I'm not selling anything ("the flowers") to buy it. And as with my idea of value stocks, I'm prepared to hold the stock my usual two-three years to see what develops.

To: IntoOLEDs who wrote (66374)	2/2/2021 1:31:15 AM
From: bruwin	Respond to of 78752

" ....of these "value" stocks, Why have they been left behind in the market run up of 2020 ?" I would say that what a more discerning investor is looking for are companies that produce regular profits that are consistent and of a reasonable magnitude. This doesn't appear to be the case with SPTN. After all its Expenses and other deductions the company is left with less than 1% of its Revenue left over on its Bottom Line. That, in turn, is not going to provide much of a "pool" from which to pay a decent and regular Dividend without providing very little to add to its Retained Income on its Balance Sheet. I guess ardent "Value Investors" will be looking at SPTN's Book Value and its current share price. It seems BV = ~$20/share and P = ~$18/share. Maybe that's an incentive to hold onto their SPTN shares. However, its TANGIBLE Book Value is ~$12/share. So if the company was liquidated that's the estimate that shareholders will get, ... a 33% estimated loss on the current price. Seems to me that there could be a lot better places to "leave one's money in" ......