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My first 2 portfolios will be strictly based on fundamentals. They will be very simple in their strategies. Buy undervalued stocks and sell overvalued stocks. Each portfolio is not fully invested yet, so the weights won't add to 100%. Portfolio A: A pure long portfolio. CHRS *** Average...

Ok, I had another Journal that I was using before, but since my goals and strategies have changed, I've decided to start a new thread. Let me first start off by saying and warning that some of this may *look like* investing and I hope that members here won't immediately discount it because...

That's not a very good analogy. Gravity is the dominant force and is extremely predictable. You drop the leaf and you know exactly where it's going...to the ground. All the "chaos" in between is irrelevant. I challenge you to predict the long-term trends of the market. That's where the...

Anybody who bought Enron didn't know how to read a cash flow statement. It was obvious that Enron had no cash whatsoever, yet they had all these "earnings". A quick look at that fact that no cash was coming in made it blatantly obvious they were playing accounting games. You can "trick"...

Maybe I'm biased, but I would say get a second degree in Computing. I as well am finishing my Masters in Finance. I got a software engineering degree a few years ago and have been in the markets for about a decade (albeit mostly investing). I decided my real love is the markets and needed that...

Simcere Pharmaceutical Group produces and supplies generic pharmaceuticals to the Chinese market. I truly believe that this company will become a huge player many times its current size. As the Chinese embrace capitalism more and more, they will end up just like Americans in terms of buying...

Show me a stock trading at 50% of its intrinsic value. In a perfect world, you are correct. But in the real world, there is so much competition and the big institutions and hedge funds have automated systems to expose these undervalued stocks the very instant they approach anything like you've...

Excellent post Bob and you've elegantly highlighted exactly why fundamentals and economics of the business are more important than price action. I completely agree with you and am very glad to see somebody else that understands what to look for in good value buys and how to interpret and...

1929 :)

ummm...this economy is NOTHING like the economy of the 70's. The economy of the 70's dealt with extreme supply shocks for oil (OPEC embargo) and out of control interest rates. I don't see the US going into a recession and there are no supply shortages. Granted, input prices are going through...

Well...just to be a stickler..:D ...The Java programming language is actually written in C and includes another layer of compilation that happens converting the intermediate byte code to assembly language at runtime. The JVM is also another subsystem which sits between the process and the...

Not too bad. I'd like to see the price come down about another $1.00-$1.50 though.

I'm starting to feel bullish again myself JimmyJam. Just two weeks ago, I was completely bearish, but with the huge shakeout recently in the financials, I'm a little less worried. Plus, I think the retailers are going to have a good christmas season. We'll have to wait and see. But for the time...

People will buy coffee and other "expensive" food items no matter what. They may seem expensive to you, but I would also imagine that you probably don't buy those items frequently now. People who do buy those items more often won't get the "alternatives" just because of a recession. They just...

Not true. Food, restaurants and other food/beverage types of industries are relatively recession proof. Restaurants do well in any environment relative to other industries.

Good call! I actually am pissed at myself because I was going to place an order this morning at work and as soon as I walked in, I was slammed with problem after problem and I forgot to put in the order in, and the damn thing bounces over 15% today!! While I still think it's a good long-term...

I told you why I'd freak'n pick it. Because the price is below book value per share. The company has realized that it needs to cut costs, (which it has the last quarter), and the "real" PE is quite low. Do you have any fundamental reasons why you think it's a piece of garbage?

No it's not.

That's a red flag for a growth investor, that's a green flag for a value investor. Apples to oranges...you can't compare them. Which is precisely why the stock dropped 30%. Growth investors don't like news that says "we aren't going to make your future prediction of what the stock is worth...

Risk to reward. The stock has dropped like a falling knife, but that's because it has been perceived as a growth company when it really shouldn't be at this point. Panic set in, and now the stock price has reached a critical mass. The margin of safety is quite large right now. You don't...