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

To: petal who wrote (66797)	3/4/2021 12:22:31 PM
From: The_Commodore	1 Recommendation Recommended By petal Respond to of 78915

Ok, seems like we are mostly in agreement. My mention of falling knives is really when they are actually falling knives, in the sense that there is no hope, the company’s earnings are decreasing with no end in sight, or is already losing money... Things like that. I agree with what you say on the contrarian mindset, but maybe I think that word is too strong... - Bill

To: petal who wrote (66797)	3/4/2021 12:32:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78915

I will scale into a position and sometimes I will pay a premium but have larger Buys every 5% lower to where I s/d be able to do well if the company performs (ie recognizes the value of hidden assets, normalizes earnings, increase EPS w/ acquisition and/or restructure). Then as management executes their plan and brings more value to the company, I will scale out of the investment selling my high cost shares and keeping my low cost shares as part of my long term core holdings. UNFI w/ their acquisition of SVU assets a few years ago is finally working w/ the renewal of their Whole Foods contract (their largest distribution customer). Was buying shares in 2019 and 2020 at between $6.50/share - $8.50/share. It was hard to pull the trigger for more shares in 2/2020 but I knew the value of those SVU assets. In hindsight I didn't buy enough. Doing the same thing w/ JOE w/ a few more shares at $ 47.47/share. Here the value is in their land assets and much more difficult to value than the SVU assets. Position in JOE still very small but adding every 5% lower. Notice that w/ UNFI my buying was over an 20 month period. Many times on finding value, a new management team is brought in (or activist investor) and that is only the start. It takes time to change the company and this can take from 12-24 months. You get the opportunity to add shares. NWL is another work in progress. I have not given up on it but started buying this 8/2018 and more buys 8/2019. Carl Icahn's son Brett is the activist and on the board. I am still looking for a price at/above $35/share. They pay a pretty good div while you wait but I have already been peeling off some high cost shares (w/ a small gain), which is/was part of the plan. 9/2018 article Brett C. Icahn, Carl’s son, purchased 110,000 Newell shares for $2,296,800 on August 9. Two of Icahn’s other associates, Courtney Mather and Patrick Campbell, bought about $1 million and $500,000 worth of Newell stock last month. The two men were nominated by Icahn to sit on Newell’s board, and Newell agreed to that step back in March. It's all about your investment strategy/thesis, time and money commitment and monitoring results and 'Exit' if none of of that happens.