Speaking at the Value Investing Conference, Jim Chanos, President of the Kynikos Associate and a noted short in the market listed 5 different sectors and 5 representative stocks
as value traps.
As long as you do your due diligence, looking out for phenomenon such
as value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panics.
Investors convince themselves that a stock makes sense because it's cheap, making it a great value is known
as a Value Trap.
I've always heard it referred to
as a value trap.
For portfolios, there is no such thing
as a value trap.
I've never thought of Argo
as a value trap — don't forget, most companies that are net net type bargains often have an atrocious business, atrocious management & are continually losing money.
And I'm rather amused to see Hot Tuna mentioned
as a value trap — coincidentally, a stock so pathetic it inspired me to write about it a couple of times..!
Not exact matches
The
trap most people fall into is thinking that all followers are equal, and that any new follower will have the same
value as any other.
«
Value investments have become better bargains as each day passes, existing in the purgatory of «value trap» - land,» Chopra wrote in the
Value investments have become better bargains
as each day passes, existing in the purgatory of «
value trap» - land,» Chopra wrote in the
value trap» - land,» Chopra wrote in the memo.
Investors commonly refer to this
as a «
value trap.»
«To avoid potential
value traps, we also filter our companies where the 10 year trend in cash flow
as a percentage of sales or per fully diluted share is negative» Bernard Horn
Roger Fan, the CIO and founder of RF Capital Management, llc., shares his investment philosophy, definition of risk,
value traps, and experience
as a fund manager and entrepreneur.
They're generally referred to
as «
value traps».
Others, known
as «
value traps,» are cheap because they're bad companies on the decline.
I am extremely pro-life
as I believe the scriptures make it plain that God
values all children even prior to conception, but I refuse to fall into their manipulation
trap that they have set for this coming year.
While we totally get the
value of having a store - brought bar on hand (we like Lara Bars the best), it's important to be discerning so
as to not fall into the granola bar
trap!
Galium aparine — also known
as cleavers — is a safe and time - honored lymphatic tonic,
valued for removing and draining
trapped bacteria from lymph glands when taking internally.
Value traps are prevalent
as a result.
Apologies to my Chinese friends out there, but to avoid
as many
value -
traps as possible I would also reject investment in any net - net stock headquartered in China.
In articles such
as Some rough with your smooth, we have noted one of the key risks facing
value investors is falling into «
value traps».
In deciding how much of each stock to own, a focus on business Quality (
as measured by profitability, stability and financial strength) helps us to maximise our exposure to those stocks which are both attractively
valued and good quality and to avoid «
value traps».
These are excellent examples of the challenges in
value investing — a stock could be defined
as under -
valued for a good reason, and may remain so for a significant period of time, perhaps years or forever if the company has experienced a permanent and material change in operations (a «
value trap»).
Today's good deal could just
as likely be a
value trap.
As companies diverge from financing, however, book
value can send investors into a
value trap.
Consequently, the threat of a
value trap based on this metric would be sprung just
as it was when I evaluated cash flows above.
The quality focus also seeks to avoid «
value traps» — companies with favourable valuation metrics
as they approach bankruptcy, that a pure
value exposure would likely fall into.
Argo Group (ARGO: LN): Argo's share price is now revisiting 5 - year lows... Obviously, frustrated shareholders have (understandably) concluded ARGO's a permanent
value trap, and its illiquidity has exacerbated the share price decline
as they've exited.
The contention is whether these net current asset
value stocks will perform
as they have in other countries, or whether they are destined to remain net current asset
value bargains, the classic «
value traps.»
i do think that the paper business is just such a bad business that it is a
value trap as well, but RFP does not have the rollup and pot.
But on the other hand, you also have just
as many investors who may refuse to ever seriously consider Apple, let actually buy it — in which case, the fundamentals and / or its valuation are unlikely to ever sway them (in fact, the cheaper the valuation, the more they're persuaded it's really a bad buy /
value trap!).
As a result, I fell into a wide variety of «
value traps» where I didn't see that the company was «cheap for a reason.»
(A
value trap is a stock that appears to be cheap by traditional valuation metrics, such
as price - to - book.
In our Investing in Asia blog series, we lamented the lack of activism in Asian markets and highlighted this
as one of the reasons for the large number of «
value traps» in those markets.
Steve jobs once said «Don't be
trapped by dogma which is living with the results of other people's thinking» and i think it applies to
value investing world
as well.
Value traps are stocks that appear cheap on all the relevant metrics but the investors could still lose money
as there are some fundamental issues with either the company or the industry.
In the past, I have had substantial doubts
as to whether a classic «
value» strategy could be effectively implemented within the developing world — «
value» seemed destined to become a «
value trap.»
As we mentioned above, this can be a telltale sign of a
value traps.
Value traps — for purposes of investing — are defined as: «situations in which shareholder value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic value, dividends or legitimate share repurchases.&r
Value traps — for purposes of investing — are defined
as: «situations in which shareholder
value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic value, dividends or legitimate share repurchases.&r
value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic
value, dividends or legitimate share repurchases.&r
value, dividends or legitimate share repurchases.»
The company's fortunes went from bad to worse
as Tesco became a classic
value trap,
as shown in the share price chart below.
«Using low
values,» then, Temple and Coleman multiplied their estimated 1.4 million rural free - roaming cats in the state by 28 («twice urban kill rate»), and then multiply that by 20 percent (the «low dietary percent,»
as they call it, though it's actually a gross misinterpretation of Mike Fitzgerald's work,
as Ellen Perry Berkeley points out in her 2004 book TNR Past Present and Future: A history of the
trap - neuter - return movement [14]-RRB-.
Do not fall into the
trap set by low - quality pet food manufacturers who sell breed - specific formulas that offer low to moderate nutritional
value at best — these manufacturers also tend to make use of non-nutritive fillers to bulk up their products
as well
as plant - based proteins to increase the protein content without actually adding more meat.
But the stakes are extraordinarily high in L.A. — in terms of lives saved or lost, but also in terms of the city's symbolic
value as a community committed to
trap - neuter - return despite both the injunction and the faltering economy.
The stakes are incredibly high in L.A. — in terms of lives saved or lost, but also in terms of the city's symbolic
value as a community committed to
trap - neuter - return, despite both the injunction and the faltering economy.
A further area of replay
value includes revisiting levels to improve your level status such
as the amount of times your mechanical bird has died from coming into contact with a
trap, a steam generator directing you into a wall or being left behind the screen to flawless for completing a level without dying and collecting all of the gears throughout each of the levels.
In constructing
traps and lures, Rantanen explicates his interest in duplicitous objects; the sculptures are, in this respect, self - reflexive, drawing skeptical attention to their own status
as artworks — a designation which, while superficially arbitrary, enacts an intrinsic transformation upon the cultural and monetary
value of its subjects.
The piece falls into the partisan
trap of painting all opponents in one color when in fact there are conservatives who care about science and energy, even some (Charles Krauthammer comes to mind) who — while challenging the portrayal of global warming
as a real - time crisis — see the
value in a high tax on gasoline, swapped for lower taxes elsewhere.
In his book The Conundrum, David Owen, a staff writer at the New Yorker, contends that
as long
as the West places high and unquestioning
value on economic growth and consumer gratification — with China and the rest of the developing world right behind — we will continue to burn the fossil fuels whose emissions
trap heat in the atmosphere.
Trapped - in gains — Some businesses own assets that have grown in
value since they were acquired (such
as real estate or investments), or have been depreciated yet have substantial
value if liquidated (such
as durable equipment).
LIC top officials are also at blame since they only think of traditional plans
as once a gullible customer enters into these pathetic plans, he is virtually
trapped for a long time since surrender
value of these plans in the initial years is nothing to minimal.
«
As a result of NYRT management's many misjudgments, including its disastrous decision to approve the JBG transaction, we have absolutely no confidence in the ability of this board to unlock the significant
value that remains
trapped in NYRT's shares,» Ashner said in a statement Monday, referring to the REIT's ticker symbol.