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.

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

To: Investor2 who wrote (4959)	9/4/1998 11:18:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 78497

I agree Bankers Trust should be looked at at the current price. Good catch. It certainly looks very cheap. If Latin America blows up next week, it may look even cheaper. Didn't realize the dividend yield is so high - that sounds really interesting. My take on Bankers Trust (I have interviewed with them and now am a customer as an institutional investor). They do a good job on the sellside research but they are not one of the top five. They do OK in investment banking, but they are not one of the top five. They are big in asset management, but once again, not a leader. In my view they are a follower in every one of their businesses. Amex, Morgan Stanley and Merrill are on my list because every company in this industry has gotten shelled, but these - and Goldman (not public...yet?) and Citi - are the franchises in this industry. I would not call BT a franchise. I think the knock on BT is that even they have a hard time explaining what they do, and as a result tend to follow trends and get hurt because they don't quite know what they are. Remember the derivatives fiasco? That was not a coincidence, and it should make you worry about what piece of their balance sheet is about to blow up now. There was a big article in the Wall Street Journal today about the company. After all that, this far down and with a 6% yield, this could still be a home run. Maybe what I said is conventional wisdom - I don't know what others are saying. Keep us posted on what your research tells you. Jim

To: Investor2 who wrote (4959)	9/5/1998 11:39:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78497

Investor2: re BT. Yes, could be a buy now on its div. yield. Assuming div. isn't cut. Div. yield has been at 7% or more in late '91; also in '95. Those seem - in retrospect-always in retrospect --gg-- excellent buy points. That would mean BT stock at 56 (assuming continued $4 div), down much more from current price. But stock is at a very high yield now relative to S&P yield -- which indicates a buy point now IMO. (Assuming all other fundamental values remain intact.)