Comments on: What has the average value investor been buying? http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/ Insights behind the investment headlines Wed, 16 Nov 2016 21:43:49 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: SK http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/comment-page-1/#comment-1469 Wed, 18 Mar 2009 18:11:42 +0000 http://blogs.reuters.com/globalinvesting/?p=1568#comment-1469 Responding to Joan of Arc, just because a company cuts it dividend doens’t mean it’s stock price should drop. If the company makes the same amount of earnings, but cuts its dividend, the same amount of earnings would go into Retained Earnings. Which are still earnings entitled to the shareholder. However, the company can use those funds to grow the business, increasing the Return on Assets and Return on Equity at an even higher rate, rewarding shareholders even more.

The point is, the primary factor to consider is the earnings, not the dividend payment, which is a secondary factor.

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By: travguy http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/comment-page-1/#comment-1468 Wed, 18 Mar 2009 15:49:01 +0000 http://blogs.reuters.com/globalinvesting/?p=1568#comment-1468 I hear a lot of talk of energy stocks now—we have never had a double bubble–is the party over?

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By: Joan of Arc http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/comment-page-1/#comment-1467 Wed, 18 Mar 2009 14:43:51 +0000 http://blogs.reuters.com/globalinvesting/?p=1568#comment-1467 If the econimy stays bad or flat, then dividends get written down, and the price of company stock should fall to reflect this. Where is the value in this?

People got used to massively hyped up prices in both the stock market and the housing market. Now stocks are down to a resonable price assuming the econimy were to be in good shape.

But this is no small beans recession. It ultimately has to be as bad or worse than the one in the early 1980s. And has the potential to still get a lot worse. As this is a world wide downturn not just USA.

So with this in mind are stocks really that good value?

Or to put it another way the value stocks just keep getting more and more value…

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By: Change Your Life for Better http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/comment-page-1/#comment-1463 Wed, 18 Mar 2009 06:03:59 +0000 http://blogs.reuters.com/globalinvesting/?p=1568#comment-1463 Presently I would suggest the average value investor to keep quiet and not do much activity. It is not still the time for a value investor. It is only for a trader.

I don’t know when those times will be back again. There is so much further to collapse before that.

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By: FedGrant http://blogs.reuters.com/globalinvesting/2009/03/17/what-has-the-average-value-investor-been-buying/comment-page-1/#comment-1462 Wed, 18 Mar 2009 01:45:41 +0000 http://blogs.reuters.com/globalinvesting/?p=1568#comment-1462 You would think that Value investing would start to see some heavier outflows about now. Scary to think that that isn’t happening. There is still a possibility that this may turn out to be one of the biggest opportunities since Joe Kennedy went short on the exchanges in 1928.

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