Sentences with phrase «of a value trap»

You have to dig into the details of the company and look for the warning signs of a value trap.
Another interesting case of a value trap can be found in the energy sector.
Of course, you wouldn't want to construct a portfolio that is full of out - of - favor things, because then you likely have a portfolio full of value traps.
The reader suggested that this company would be a case study of a value trap.
This is by all means not an exhaustive list of value traps, but represents the most common ones I run into when analyzing businesses.
A poor and inefficient management of a company is a sure sign of value trap.
Avoid being a victim of value traps by only investing in net - nets which:
Avoid being a victim of value traps by only investing in net - nets which: Generate revenue, experience NCAV Burn of less than 25 % annually, aren't based in China or if you are risk averse, aren't Chinese, have sold at a price above the current NCAV in the past 5 years, and are not issuing shares.
Over time, however, we have learned that so - called «jockey» investments can be a form of a value trap in certain conditions.
A good example of value traps over the last ten or so years are businesses which have been subject to technological obsolescence.
«You have to recognize if a disruptive technological or structural industry change is underway or relative value will point you to a lot of value traps.
(Desai Capital via Sum Zero) Speaking of value traps.
In other words, he has a very good track record of making money at the expense of value investors by identifying value traps, so knowing what he thinks the key characteristics of a value trap are should help value investors avoid falling into them.
Chanos pointed to five common features of value traps, which are summarised below:
He recently presented on the theme of this blog post: Is 2016 the Year of the 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.
While some inexpensive companies will prove to merit their cheap prices and will disappear, the inevitability of value traps does not invalidate a devotion to a value - focused strategy.
I'd rather look back in 30 years and accept that I occasionally paid full price for my BMO shares, than look back at a host of value traps I plowed by BMO dividends into because I was «sure they are going to come back.»
[Assuming I'm not sitting on a bunch of value traps, of course...]
The concept of value investing is certainly not new to investors, nor is the notion of a value trap (when the stock price takes a dive and it looks like a better value).
Most of the value trap stocks suffer from lack of innovation, degrading competitive advantages, high debt, low - interest coverage potential, poor management, declining profitability and no future growth prospects.
when to exit a position to limit your losses — or in other words, get out of value traps and protect your capital from market crashes
As we mentioned above, this can be a telltale sign of a value traps.
Finally, our experience is that by encapsulating typical market behavior in our approach, a far richer array of stock recommendations can be captured, for example «the exception to the rule» in the case of value traps.
Declining market share, declining competitive advantage, and company not being able to contain its costs are again few big signs of a value trap.
The first sign of a value trap can be when you see a company paying a much higher dividend yield than its peers.
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