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: Don Earl who wrote (5947)	2/6/1999 1:39:00 AM
From: Bill Zeman	Read Replies (2) \| Respond to of 78476

Don: Please for your own sake, read and consider post #5946 by Jeffrey Bash. He describes well the kind of carnage that can hit the oil industry in a major downturn from personal experience. EGEO is the perfect type of dinky company to go belly up in this kind of slump. You won't think 2 or 3 dollars is a good price then. Thread: This stock (EGEO) brings up a good point. All of the stocks I see posted on this board have good price to book and other valuations. You guys are good at looking up stocks like that, but the crucial issue is: WHY? There is always a reason a stock gets beat down. This question must be successfully answered with surety before you can consider investing. As I have looked for the answer to this question on all the stocks that have been posted for the last few weeks, I have yet to find one that doesn't have darn good reasons for being devalued. The perfect stock is the issue that has been beat up by short term earnings fluctuations, or something like that which is soon to be resolved. This truly is the rare gem. May we all find just one or two of these. Bill Z

To: Don Earl who wrote (5947)	2/6/1999 8:07:00 PM
From: Joe Dancy	Respond to of 78476

"There aren't any blue chips showing up on my list.<G>" I agree Don. I can't buy the blue chip stuff at the prices they sell for. With the small and micro cap companies there is no correlation between the value of the underlying business and the stock price in quite a few cases. Long term, that is playing into our hands. Just got Merrill's Global Research Review for January. Of the 20 domestic oil field service companies they cover 16 were buy or strong buys for both short and long term. Most sold for under 2 times price to book. Then again, with oil prices it may take some time to see value out, but it will. But I still think we are a bit early - then again I'm a terrible market timer :). Joe