Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Learning To Invest Correctly - A Shared Experience -- Ignore unavailable to you. Want to Upgrade?

To: MSB who wrote (89)	7/26/1998 1:02:00 AM
From: Druss	Read Replies (2) \| Respond to of 253

MSB--A word of caution on book value. It is not always an accurate reflection of reality. In theory a company trading at book value would be a totally safe investment. If the company were to go belly up a fire sale could be held and the proceeds divided up and sent to the share holders and they would break even. It is not always so as the machinery being valued close to purchase price may only have scrap value on the open market. Buildings may also be far overpriced as renovation maybe required to sell them or make them attractive or the real estate simply shows no buyers. Treat book value with a grain of salt. All the Best Druss

To: MSB who wrote (89)	7/26/1998 6:04:00 PM
From: Jeffrey L. Henken	Respond to of 253

There are a couple of problems with SSTI. First it's in an industry that is struggling. They also have not been profitable for a while. Here is a site that will be an excellent resource to you in your future research: wsrn.com I would suggest you bookmark it for future reference if you do not already use it. Below you can click on the URL to read specific information on SSTI. You can even pull up an industry comparison: wsrn.com I have seen stocks selling below book value. The problem is that when a company's product becomes a commodity then it's value may even drop. If so then the company's book value will as well. Another great thing to check is the stock information at Yahoo. I'm sure you have done lots of this but one nice feature is the insider information. Lets look at SSTI and see what shows up? biz.yahoo.com No real red flags there. WSRN says they are expecting SSTI to earn 14 cents a share next year. Have you checked at Daily Stocks for more information? dailystocks.com Since this thread is dedicated to discussing the information which surrounds doing the needed due diligence to avoid common investing mistakes without making specific recommendations I will not give you my own opinion here. I will suggest you take the time to call SSTI and discuss their future prospects with someone in management. Get the names of some of their customers and call them too. You will eliminate a lot of risk that way. The Investor Business Daily is also running a series right now on successful investing. You might enjoy it: investors.com Good luck with all your investments. Regards, Jeff