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   Strategies & Market TrendsValue Investing


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From: Paul Senior1/25/2016 2:32:39 PM
   of 75775
 
UTX. I'll try again. Reentering this stalwart for a very few shares. Low p/e (relative to itself); history of dividend increases. Low p/bk (for those of us who follow such things) and fluctuating-but-increasing stated book value.

finance.yahoo.com

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To: Paul Senior who wrote (56756)1/25/2016 4:04:19 PM
From: Wallace Rivers
   of 75775
 
Bought back in to LM this afternoon on the down draft. Last owned in 2013, sold north of $31 then.

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To: Wallace Rivers who wrote (56757)1/25/2016 9:48:12 PM
From: Paul Senior
   of 75775
 
LM. Looks like Mr. Pelz/Trian Fund are still in it. Maybe he/they will use their clout to bring about an improvement in the stock, as they apparently effected after they bought the stock when it was at these levels previously.

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To: Paul Senior who wrote (56758)1/25/2016 10:29:17 PM
From: Wallace Rivers
   of 75775
 
i was surprised to see Legg had round tripped from 30 to 60 back to 30 since I sold in '13. Talk about dead money. I forgot about Peltz/Trian, I purchased as a reversion to the mean play.

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To: Paul Senior who wrote (56756)1/26/2016 7:16:59 AM
From: Ditchdigger
   of 75775
 
I'm watching utx as well. Would like to start a position a little closer to or south of 80 though for technical reasons.

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To: Wallace Rivers who wrote (56757)1/26/2016 5:12:09 PM
From: William Cloutier
   of 75775
 
For now, I don't invest in financial companies
because I don't understand them so much.
I certainly miss many opportunities
If you have any tricks or tips for me...

For example, I think that the BV is more
representative in this sector but I'm not sure
and I don't know how to dissect the Income

Thanks for any reply
All good, All the time

The young investor

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To: William Cloutier who wrote (56761)1/26/2016 9:01:19 PM
From: E_K_S
   of 75775
 
I agree w/ you that many of the financial institutions (especially the very large banks) are hard to understand. How do you know that stated BV reflects the asset value carried on their books and/or the true market value. I suspect it is much better than in 2008 but have losses been really written off?

I suspect not but how can one really tell what their assets are worth (ie fair value). Income is a bit easier to derive. Their spreads will increase as rates slowly rise so margins will get better over time.

I like the small regional banks and even the micro cap banks. You take on more company specific risk but a well managed institution in a favorable regional market (like California coast property) can provide good safe returns.

I own SNFCA a very small insurance/mortgage and cemetery service company. 30% of their business comes from loans, so you have good exposure to that sector, they sell insurance that represents another 25%, 25% from their land/real estate development projects and 20% from their cemetery business. The company pays a 5% stock dividend every year (xdiv last week). The stock is selling 30% below stated BV which is now around $8.00/share.

With only 12mln shares out this stock is thinly traded and the daily volume shows that. My average cost is around the current price but I continue to collect the stock dividend. The company is located in Utah and serves the Mormon community.

So not all banks and/or financial institutions are bad investments. Just understand what you are buying. That's hard w/ the very large banks and many of the regional banks. FWIW, I also own New York Community Bancorp Inc. (NYCB). They pay 1 6.5% dividend and never took TARP funds during the financial crash in 2008.

EKS

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To: Paul Senior who wrote (56750)1/27/2016 6:02:28 AM
From: tommyleeho
   of 75775
 
From Security Analysis (1940), and Intelligent Investor:

1. for first-class, big (stable) company stocks, to wait for a downturn;
2. for secondary (unpopular) company stocks, to look for them at any time except at the near peak of an hausse (boom);
3. for a balance between bonds and stocks, to either move into bonds up to 75% in a boom;
4. to keep buying stocks at the same fixed sum as before, resulting in smaller purchases of first-class stocks (or index funds).

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To: Wallace Rivers who wrote (56727)1/27/2016 7:56:18 PM
From: ferris wheel
   of 75775
 
Hi Wallace,

AXP doesn't seem to want to find a bottom. Bought it in the $70s and thinking of selling and taking a loss. I really don't want to ride it down to the 40s.

Any thoughts on this persistent selling?

GLTA,
FerrisWheel

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To: ferris wheel who wrote (56764)1/27/2016 8:02:36 PM
From: Spekulatius
1 Recommendation   of 75775
 
Re AXP - I bought a small position today at $55 after some consideration. I think the headwinds are there, but the brand is still intact and it's a good business. Of course it could come down some more, especially if the market tanks, but I think at current prices, there is value.

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