Comments on Triaging My Way To Financial Success: Alternative Value Traps:

I agree with you if the definition included sustai...

2008-07-18T13:55:00.000-04:00

I agree with you if the definition included sustainable disadvantages. value traps can not be due to cyclical factors, eg., credit crises.

Sami,I define a Value Trap as having more than one...

2008-07-17T20:11:00.000-04:00

Sami,

I define a Value Trap as having more than one competitive disadvantage such as an inability to manage risk, competing on price, reactive vs. proactive management, etc. Basically the business isn't functioning as it should on a fundamental basis. The price declines were simply illustrated to provide a context of the consequences of investing in the chosen stocks with the view that they were value stocks last year.

How do you define a value trap?In all honesty valu...

2008-07-17T16:38:00.000-04:00

How do you define a value trap?

In all honesty value traps are only discovered in hindsight. price decline by x% does not qualify it for a value trap.

on the other hand I agree that price decline do not make a business a "value investment".

CM is only off 50% I think on a YoY basis? I consi...

2008-07-16T09:09:00.000-04:00

CM is only off 50% I think on a YoY basis? I considered putting it on the list, but they have yet to cut the dividend and since I hold a indirect position through MFC I didn't want to show a bias.

But they are really good at making sure those F*CK up fairies get out of the closet to cause havoc every so often.

I'm more than a little surprised that you haven't ...

2008-07-15T22:45:00.000-04:00

I'm more than a little surprised that you haven't nominated at least one Canadian bank. Is there a more appropriate poster child for poor management and veiled risk controls than CIBC?

Citi is there right near the top. BAC I didn't in...

2008-07-15T15:13:00.000-04:00

Citi is there right near the top.

BAC I didn't include because I have a sneaky suspicion that they're not going to turn out to be a value trap and are better positioned based on risk than many of the other US financials.

FWIW BAC is only off 68% YoY, lol.

Any reasons why no C and BAC ?

2008-07-15T09:26:00.000-04:00

Any reasons why no C and BAC ?