The "New" Value Stocks

[brewer12345]

Quote:

Originally Posted by wildcat http://biz.yahoo.com/special/hedge06_article1.html B-week article kind of describes what I was trying to say with the initial post.

I have been sorry I didn't buy spin-offs with depressing regularity in the past few years: AIZ, GNW, AMP, etc. Next time I see one of reasonable quality I will have to jump more-or-less blindly in...

[wildcat]

I skipped Moneygram (and like you AMP) thinking the valuation was steep but I do believe there is some inherent catalyst when the business becomes its own separate entity.* I think the odds stack in your favor.* Brew - FYI - Verifone was a spin off from Hewlett Packard but it was done privately.*

[brewer12345]

Quote:

Originally Posted by wildcat I skipped Moneygram (and like you AMP) thinking the valuation was steep but I do believe there is some inherent catalyst when the business becomes its own separate entity.* I think the odds stack in your favor.* Brew - FYI - Verifone was a spin off from Hewlett Packard but it was done privately.*

I don't disagree. But I will have to lighten up on something else in order to have the capital to invest in a spinoff. Right now I am watching PPD and awaiting my chance.

[bpp]

I checked my DRIPs spreadsheet, and I have the number of shares recorded out to 9 decimal places -- that is how the brokerage reports them -- though the total cost basis for each company is only calculated to the nearest penny. These are PFICs (Japanese REITs, so probably not included in CFB's mutual funds ), and I figure it can't hurt to be anal to show good faith in the event of an audit, given the hostile treatment they get from the US tax code.

Bpp

[wildcat]

BTW Bunny Fuzzy Cute -

If I were in your situation (ER'd with a nice bank account) I would probably care less about individual stocks as well. So in a sense I would agree with you given your situation

[maddythebeagle]

Cute Fuzzy Bullfrog: I am amazed by your explanation. You are so good that you have set yourself up to argue the opposite point on just about any investing topic.

[cute fuzzy bunny]

Not at all. Its just that some investing schemes may be better for some people than others, and as times and needs change, so may the investing method. Although to be honest I think what changes is how people THINK the investing method is going to work for them.

I thought I was pretty smart and could get an edge buying individual stocks in a bull market. I think some people might have limited success with it in a sideways market, but we do have a tendency to remember our successes and forget our failures.

Its been pretty well proven to ME that the majority of short to intermediate term market movements have no basis whatsoever in facts and figures but in group think and investor psychology. I've seen the same stimuli produce opposite results or no results at all in a stock price. With the myriad of influences present, its implausible that you could buy a stock, even a reasonably priced one, without plans to hold it for a fairly long time, and even then be assured of a favorable return from a single issue. Certainly buying and holding 30-50 issues in different markets gives you enough diversity, but then you just built your own mini mutual fund. Maybe a good idea for small and microcap stocks that some folks feel are under attended to, although I'm not totally sold on that line of thinking.

And theres a very distinct, but perhaps fine line between arguing and making sure every facet of a complex issue is examined and discussed. For people who already have their minds made up, its an argument, to be sure.