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

To: Paul Senior who wrote (5457)	12/18/1998 12:46:00 AM
From: LauA	Read Replies (2) \| Respond to of 78740

CYM - please indulge me with your method for determining that this is a 'value' stock. I saw the original suggestion, so I dutifully went to Value Line as Charlie Munger has told us to. Aside from their thumbs down recommendation, the numbers and text were relatively understandable. Debt is big. My remembrance is that the dividend could be in question. So then I went to the 10K and saw that their operations were everywhere. They were selling coal properties in Appalachia (sp), but keeping them elsewhere in the Midwest and West. They had molybendenum mines that were of questionable profitability. And copper mines were in this country, Peru, and Chile. Lithium was a loser that they are exiting. Finally they had merged Amax Gold into Kinross. How do you value this? I just gave up. On the otherhand, I confess that I'm a 'January Effect' addict such that I bit into IBC and HLX which have been mentioned here. Also LNN, YLF, and VANS. And I wondered about WALBP - That 15% cumulative dividend looks yummy, but is this just a 'falling knife'?

To: Paul Senior who wrote (5457)	12/18/1998 9:20:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78740

On my best Graham investments, you're right, all I would have used would be the +, -, x, / keys. Add up the value of what's on the balance sheet, subtract debt, divide by the number of shares. Of course the hard work comes in knowing what numbers to use. My worst investments have been the ones where I knew the balance sheet was air, but I thought I could project the next 10 years of earnings. Usually turned out that the company blew up the next quarter. JJC