RE:Value stocksExcellent post Notwrong, the market really should pay far more attention the the types of metrics that Warren Buffet and other smart people, just as u say. Warrens favourite is book value. ........................ just looking at the Q1 numbers from CXR and right 100% aligned with your point. CRX has a book value of $US 20 plus and it is really good to see that CRX, unlike so much junk out there cam double from here and still be under 2 times book value................... appreciate you bringing the valuation model into perspective for the retail investors. When we hit $US 40 plus we are still way under the market multiple on book value.
notwrong wrote: Looks like conventional yardsticks, such as the book value, P/E ratio, etc. are no longer reliable gauges to evaluate the worth of a stock. One of the reasons is that nowadays, a stock can be so manipulated and distorted by investment banks, hedge funds, short sellers, and day traders that it is no longer possible for a retail investor to figure out what actually is going on with a company and what the true worth of a company is. CXR, VRX, etc. are a case in point.