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Originally Posted by B-Line
It sounds to me what you are talking about is value investing: Rather than "speculating" that a stock will go up because it is currently "in favor".. You would be buying stocks that are undervalued based on the assets of the company. Say for example, a company should be worth $10/share based on assets and earnings but it is only being sold ofr $8/share, it's a good buy. But you have to have the discipline to sell it once it goes to $10/share because at $11/share, it's a growth stock.
B
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I liken stocks to movie stars...a lot are overpaid, and many have been written off, but sometimes the John Travolta's of the world get a lift from the Quentin Tarantinos of the world...if everything was based just on value investing metrics, then machines could build portfolios...I just get the sense that FoMoCo can't get beaten up too much more and might be an interesting bet...there is no way to "value" a political sea change that might force Chinese capital to look for a home...particularly given the fact that the nascent Chinese auto industry has soundly had their ass handed to them at the recent auto shows...they need a partner and Ford needs a friend with capital, a huge untapped market, and the ability to lower manufacturing costs. Just a wild ass hunch.
11-01-2006, 09:43 PM
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