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

To: Paul Senior who wrote (77923)	8/19/2025 1:32:18 PM
From: E_K_S	Respond to of 78515

I think you are right that a 'general' valuation formula is not the final answer but perhaps just a start. I like your approach looking at new 52wk low list and or multi year lows, then look at company specific issues that may/could be changed by management or some other fixable solution. I also want to avoid these that have a large debt obligation w/o sufficient FCF. So like you, I look at the past 10 years of FCF and want that positive. If not positive why not? Cyclical, company specific, litigation? I have had some good buys, betting on a positive litigation outcome but these do not always work out. JNJ is one but they avoided significant damage by carving out a portion of their company subject to the liability. Halliburton faced extensive litigation related to asbestos and silica exposure claims, primarily stemming from its acquisition of Dresser Industries in 1998, which had inherited liabilities from its Kellogg Brown & Root (KBR) subsidiary. I made money buying into HAL. -------------------------------------------------------------------------- Generally a stock is cheap because of either company specific events and/or a depressed sector and/or cyclically out of favor.

To: Paul Senior who wrote (77923)	8/19/2025 2:42:56 PM
From: bruwin	Respond to of 78515

Well, at the end of the day I'm just the "Messenger" {;-) I haven't interrogated any of those stocks based on my own Criteria, so I cannot say whether or not there are any there that I would recommend. In addition, IMO, using just ROIC and EV/EBIT does not give one enough information regarding the current state of a company's Financial Fundamentals. Buffett, for example, looks at a Far Greater Range of Criteria. Of course it's unlikely that any company would meet ALL of them simultaneously, but "Quality" companies would meet the large Majority of them -----> Message 29804904