Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: hamishrose One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5655  
Subject: Re: Boring Port Update Jan 2003 Date: 2/4/2003 3:49 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Regarding an additional purchase of SJM, I am against it. I felt the price was too high earlier and it is higher now. Higher earnings in Q4 do nothing to change my opinion.

When two companies merge they must merge their financial statements. This is a complicated process that involves many decisions/adjustments. Any CFO is going to try to make the merger look successful and they have the oppurtunity to do so. Indeed, WorldCom continually merged with others and used this to make its figures look much better than they actually were. Now, I'm not suggesting that SJM is similar to WorldCom (as far as I know, they have no history of lots of mergers). All I am saying is that that Q4 figures should not cause undue excitement.

I promised a while ago to post a study of WPL. I finally have some free time so I will try to post this in the next week.

I think if you can force yourself to sit on the money until this whole "war thing" is resolved you would be limiting the risk on that investment. I don't see any stocks going anywhere (positive) until the geo-political environment improves. I think there is a lot of downside risk yet, and limited up side.

According to Fisher in Common stocks and Uncommon profits, this is exactly the wrong attitude to take. The reasoning is not that stocks do well during war time but that money does worse due to inflation. He provides stats for this century up until he published his book (1958 I think) and a Fool writer has updated them for the remainder of the century.

Hamish Rose
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Berkshire Hathaway

Is the Market Overvalued?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement