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Identifying Companies trading below intrinsic value

Discussion in 'Shares' started by Simon Hampel, 25th Aug, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Roger Montgomery, Clime Capital Limited

    The time of maximum pessimism is the best time to buy. Roger will reveal some pretty simple guidelines and the current list of companies trading below intrinsic value which also just happen to be shares Clime holds, in the hopes that the price will be pushed up..

    Mark
     
  3. crc_error

    crc_error The Rule of 72

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    At least his money is where his mouth is...
     
  4. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Taking investment advice from fund managers is like asking a Marlboro executive if he thinks it's a good idea for you to take up smoking. As part of my job, I go to these sorts of presentations all the time. Usually get a nice breakfast/lunch out of it too, as a handy little bonus.

    From my perspective, I will listen to Roger Montgomery speak, because the guy has the runs on the board, he's proven himself to be a good manager, so I like to listen to his thoughts, as I do with a number of other managers as well. I will never however, take his - or any other managers - tips on which shares to buy at face value. There are two words I heard in a speech once that I will always remember: 'Question Everything'.

    It is largely the reason why I don't get those investment reports like Fat Prophets etc. The thing people seem to miss is that the guys that run these things don't print them to help investors make decisions, they print them so that people will blindly buy shares in companies they have already bought, pushing the price up, making them money. Then when the price does go up, they say 'See? We recommended this share and look at the price now!'

    There is more free information available to anyone with an internet connection than any one person could handle which will give you plenty of scope on the business you are researching. If you don't have the time to research, find a good performing managed fund and put your money into that. Why people feel a need to pay for overpriced newsletters is beyond me.

    Mark
     
    Last edited by a moderator: 25th Aug, 2008
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    The entire presentation did come across to me as a bit of a sales pitch for :rolleyes:
     
  6. Tropo

    Tropo Well-Known Member

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    "Why people feel a need to pay for overpriced newsletters is beyond me."

    Mark,

    Because people don't want to learn how to invest/trade.
    They want to be told what to do....:rolleyes:
     
  7. Young Gun

    Young Gun Guest

    I highly doubt a fund manager telling a room of 100 - 200 people that BHP (for example) is a good investment will drive up the price, so that the directors of the fund can cash in "boiler room" style.

    Fund managers don't receive any benefit's from dropping share tips. Fund managers don't want you to go out and do it yourself, they want you to invest your money into their fund / product they are flogging.

    They want you to think that they are investment guru's and it's all to hard to DIY.

    I generally find that when I go to these meetings they'll tell you all about their winners, which by the time you hear about it, it's too late.
     
  8. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    YG,

    As Sim stated, he wasn't selling share tips (today) he was selling software instead.

    Mark
     
  9. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    Well, that's good for those of us that make money from their desire to be as lazy as possible.

    Mark
     
  10. benbegg

    benbegg Active Member

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    Is Stock Val a similar product to Stock Doctor? Using Fundamentals to decide what are good stocks. I wonder if these systems picked the ABC Learning Centres problems?
     
  11. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    benbegg,

    I'll give you a clue - they are computer programs. Computer programs do what they are programmed to do, not think objectively.

    Mark
     
  12. Tropo

    Tropo Well-Known Member

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    I do not know how those systems work, but chart will tell you all you need to know. ;)
     
  13. benbegg

    benbegg Active Member

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    Yes the chart reflects the price but who would have thought the company would have been suspended last week with no signs of coming back at the moment. It seems there is a lot more going on there than we are being told. I am an ex- shareholder at the moment, having bought at $7 and sold on the way down.
     
  14. crc_error

    crc_error The Rule of 72

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    does anyone here use stockval?