Bridge Street Journal, Vol. 3.8: Values (More Likely to) Abound

By Bridge Street on Wed, 2007-11-07 23:08

Today was a fantastic day for value investors, as equities markets in general were down by quite a bit. If you've had companies on your watchlist for a while (particularly any company in, near, or which has had any business dealings with, the financial sector) and have been able to resist the recent falling prices sufficiently to have a cash position to deploy, the odds are very good that your favorite issues are selling at a discount. One way to get a general sense of the level of fear in the markets is to peruse the list of 52-week lows, such as the one provided by Morningstar. A glance at this list shows a lot of companies on the list . Note, too, that the Value Investing News main page provides a partial list of 20 companies hitting 52-week lows. If that list isn't enough to get you excited, take a look at any website providing financial news, and you'll see that the few scraps of good news are in 8 point font, while bad news is in 56 point font. In general, the level of fear is proportional to the font used to describe bad news. However, there are many companies worth just as much (or more) today than they were just a few weeks ago, but whose prices are lower (in some instances by a large percent). What a time to be alive.

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