/biz/ - Business & Finance

>This schizo opening

>>18007170
If it gets to that point, we're all boned anyway.

>>12769945
who would ever want to kiss this?
why, therefore, is it happy?

>>11048800

There's a difference between
>He-he, look at the hype. I've got a winner here
to something that is irrationally undervalued by speculators.
A practical example would be the company Xcel in 2002, parent company to five subsidiaries.
>4 were profitable
>1 appeared to be heading for bankruptcy
>Parent company (Xcel) NOT responsible for the subsidiary's debt
>Due to Enron collapse investors, and their distrust of the industry as a whole, shunned Xcel, share and bond price dropped rapidly.
>Xcel bond were trading for 56 cents on the dollar
>With a coupon of 7%
>The important question was whether Xcel could pay it's interest obligations
>$1 billion worth of these bonds outstanding, with the book value of its healthy subsidiaries valued at $4 billion.
>It clearly could, comfortably.

The result?
>The weak subsidiary filled for bankruptcy, but didn't affect the value of Xcel.
>Within a year the panic was over and an investor would have doubled their money.
So an example of what a value based investment. From nothing but research and logical thinking.

When is a good time to invest in property?