value investing

[Anonymous No.18689396]

hmmm...came across this stock. INN. It has a very high dividend and an excellent balance sheet, no cash but plenty of salable assets (hotels). Low p/e. But most of all the book value is 11 whereas the price is under 5. This means that if the company got liquified, my $750 share at $5 would be worth over 1500? Am I missing something? This seems like a great buy but is it really this easy? Plus hotels will easily come back online first of the most hard hit corona industries, they are needed for moving and business travel. Is it this easy, /biz/?

[Anonymous No.18689406]

Financials sauce
https://www.wsj.com/market-data/quotes/INN/financials

[Anonymous No.18689496]

>>18689406
>annual income has been slowly dropping the past 5 years
>makes about 50% of its income in the 2nd quarter which is where we are right now, which means they have taken a huge hit on their most important quarter of the year

[Anonymous No.18689544]

>>18689496

Agreed on both counts there, but long term if I wait it out over a year hypothetically it should be fine and also although annual income has been slowly dropping, they have continued raising their dividend over the years, which is a great dividend. In fact, I'd say many investors are in it for the dividend, and as long as that remains steady or increasing they will stay and it will go back up.

Finally, wtf is up with book value being so high compared to price? Does this mean seriously I double my money if it gets liquified? That's a big if, it's in good shape, but still shouldn't it be worth at least book value long term? Didn't Warren Buffett like rave about that?

[Anonymous No.18689762]

>>18689544
The dividend honestly isnt that high, especially for the price point. If you feel you can wait the next earnings date for INN is 4/29, and depending on if it is higher than projected the share price will go up, but if it is lower than they expect the price will drop more.

https://www.dividendinvestor.com/dividend-history-detail/inn/

If youre more looking for long holds with good dividends, Ive personally been going for MFA, RWT, and IVR. All 3 are going for less per share than INN currently, have higher dividend payouts, and with the exception of MFA, have higher ceiling prices.

[Anonymous No.18689829]

>>18689762

I'm good. I'm mostly in it to get some exposure to the hotel industry. I'm bullish on a recovery from Corona within a year or so. I think this is all 1987, and there will always be doomsayers sayings its the great depression.The dividend, (not extremely high but high enough the entail some loyalty) the fact that INN has a strong balance sheet (they may come out in a stronger position than many from this), and the (meager) chance for any appreciation in earnings makes me think the stock price will just go back to 9 or 10, even 12 long term here.

While we are discussing value stocks, what do you think of SKX Skechers? This looks like a good pick to me, bought when it was very low at the bottom of Corona crash and their new line of products are dope, I have some shoes, $70 and literally the most comfortable shoes I've ever worn not kidding.

[Anonymous No.18689849]

>>18689762

https://www.wsj.com/market-data/quotes/SKX/financials

[Anonymous No.18689875]

>>18689762


BTW I am already invested in INN, like I said for hotel industry exposure in a company unlike others that are too expensive and have debt. Something that won't go under and will likely rebound once this blows over.

[Anonymous No.18690337]

>>18689396
That's a man

[Anonymous No.18690634]

>>18690337

[Anonymous No.18690705]

>>18689762
you’re recommending high risk stocks thatre going to zero dude, you think they won’t slash their dividends? Lol deluded

[Anonymous No.18690733]

>>18689396
Value investing doesn't apply in this insane market.

There is a TSX stock that has about 800 million in assets that I bought hard into when its market cap was 70 million. It has gone down 60% since. Things aren't logical right now.

[Anonymous No.18690744]

>>18690733
What stock

[Anonymous No.18690782]

>>18690744
PONY

[Anonymous No.18690796]

>>18689544
Dividends come from retained earnings, which many companies likely won’t have much of in the coming quarters, I wouldn’t rely on meaningful dividends for a while. What they have left goes to preferred stock holders and then the plebs like you

[Anonymous No.18690831]

>>18690782
Their debt is hilariously high, but their revenues are as well.
They are in natural gas, and it looks like they tanked with oil irrationally. They are up about 50% this week though, so I'm not too far down.

[Anonymous No.18690861]

>>18690733
>Things aren't logical right now.

Things are totally logical once you figure the forex situation into it. It's just so awful that nobody really wants to think about it much, unless you live in Japan, India, or the United States in which case the next decade might be pretty awesome.

[Anonymous No.18690878]

>>18689396
What a pretty mermaid.

[Anonymous No.18690882]

>>18690861
>>Things are totally logical once you figure the forex situation into it.
ho yeah, and what's the '''''''''''''forex situation''''''''''''''''''

[Anonymous No.18690913]

>>18690882
Also interested what you mean by this.
If it's just buying / selling the volatility, I guess I could see it.

[Anonymous No.18690923]

I WANNA FUCK THAT MOUNTAIN VALLEY

[Anonymous No.18690967]

>>18690831
Natural gas tanks with oil because oil has to be above a certain price for natural gas to be cost effective.

[Anonymous No.18691075]

>>18690967
Agreed somewhat.
It's in Canada, and most homes here are heated by Natural Gas, so its reasonable to assume geography helps.
The commodity price of Natural Gas hasn't tanked to same degree as oil as well.
But yeah, it definitely plays a role. It's my moonshot hold.

[Anonymous No.18691128]

>>18689396
It can bleed to 0 volume or get delisted. That's what you're missing. Just buy ARPA desu and wait for your mom to ask what MPC is.

[Anonymous No.18691216]

>>18690882
>>18690913

Basically every institution is screaming for US dollars, and there is a massive crunch that's threatening to turn into a deflation crisis. That's why the money printer is going brrr at ridiculous levels -- it's the Fed trying to keep deflation at bay because almost literally everywhere wealth exists is trying to exit there and get into USD.

Trillions of dollars of real wealth have exited Europe and the "Emerging Markets" for greenbacks, and it's not stopping. This outflow is of course exacerbating the economic disaster there, which in turn causes more flight, etc, and Lagarde has nothing that she can really do about it. They're already at negative interest rates, but guess what that does to capital flight? That's right, ECB will PAY you to take a billion euros from it, which you can then trade for dollars at 0.56%, aka it's profitable on both sides of the exchange. The medium-term economic outlook in those areas is thus beyond catastrophic, the short term is nightmare.

America's going to do quite well, comparably, as long as Powell can keep printing money to somewhat keep up with demand. Basically the entire world except for India and Japan (not counting China is kind of a special case given their "currency controls") is demanding to finance our deficit spending with all of their liquid wealth at literally any rate of return.

So expect huge asset bubbles in the US financed by the wealth of the rest of the world, basically.

[Anonymous No.18691235]

>>18691216
>samefag

This by the way is why the money printer is going brrr at levels never before seen and yet USD is not significantly inflating against anything. Even with the Fed throwing money out of helicopters by the literal trillions, that's not enough to keep up with the demand.

[Anonymous No.18691440]

>>18691235
everybody loves the dollar, but why india and japan will have bubbles?

[Anonymous No.18691548]

>>18691440

There's fuckery afoot there that I do not understand. I suspect China is quietly buying up yen and rupees as a hedge against their own joke currency and also as economic leverage over its neighbors, but that's 100% gut.

Nobody knows what's going on there, China is completely opaque on most things and lies about the rest.

[Anonymous No.18691558]

>>18689396
where is pic related OP? did earth really had titans

[Anonymous No.18691572]

Imma check them out. Have a look at AMTD, they're undervalued at the moment, only thing I don't like is their aggressive financial policy.

[Anonymous No.18691609]

tfw you'll never have a sleeping stone giant gf

[Anonymous No.18691696]

Their liabilities and equity to debit ratio leave something to be desired, divided is great and their PP&E is really strong.

>>18690733
If anything it is especially relevant now, things like good current ratios let you know if they can survive the storm and if they're undervalued, especially compared to before, you will likely make gains that are significant.

[Anonymous No.18691714]

>>18691548
>China is completely opaque on most things
Yeah like the CIA couldn’t afford a thousand chink agents to collect info

[Anonymous No.18691731]

>>18691714

You know this is a really dumb thing to say, right?

>lol y dont forex traders just ask the CIA xD

[Anonymous No.18691738]

>>18691731
Retail forex is a scam, don’t care

[Anonymous No.18691742]

>>18691738

That's a very smart thing to say, you're alright by me Anon

[Anonymous No.18691853]

>>18690337
Only opened this thread to make sure someone did it

[Anonymous No.18692281]

>>18691216
>>18690882
>>18690913

>Basically every institution is screaming for US dollars, and there is a massive crunch that's threatening to turn into a deflation crisis.
>That's why the money printer is going brrr at ridiculous levels -- it's the Fed trying to keep deflation at bay because almost literally everywhere wealth exists is trying to exit there and get into USD.

No, money printer is going BRR BRR because it's desperately trying to keep the USD denoted credit market alive because otherwise nobody would be buying usd debt instruments, banks face massive credit default risks with their x-grade instruments and they had a massive liquidity crisis.

Institutions "screaming for usd" as a reason for FED operations is a bit biased way to put it. Sure, usd demand is high. But it's more about institutions selling usd denoted assets. Basically getting the fuck out from usd debt instruments and other assets. Partially due to disbelief in solvency, but also due to trying to avoid currency risk in their own liabilities. However, let me remind you that US has more debt liabilities to other countries than vice versa.

It's mid long term deflation is more about deflation occuring due to incomes cratering as revenues and profits crashing while there is overcapacity / oversupply everywhere.

>Trillions of dollars of real wealth have exited Europe and the "Emerging Markets"

Not really, at the moment there is no significant diff among eu vs USA equidity/bond, inflows have been small or net negative.

Anyway, this is pretty typical deflation during demand crisis. If inflation happens, it comes after when the acure crisis is over and suddenly there is trillions of extra circulating in the economy and when the previously given loans that have been injected to the economy default, but the banks do not take the credit loss and instead FED does it after buying all the pile-of-shit grade securities. Effectively money created by issuing debt is not destroyed as normally.

[Anonymous No.18692308]

>They're already at negative interest rates, but guess what that does to capital flight? That's right, ECB will PAY you to take a billion euros from it,

ECB reason for negative interest rates is exactly to lower the value of the euro to increase exports but also to avoid deflationary spiral. Also, there isn't a significant difference between us and europe interest rates. Sign of interest rate actually does not matter as much as you think.

>which you can then trade for dollars at 0.56%, aka it's profitable on both sides of the exchange.

Lmao get rich then if you trust your economic knowledge so much

>The medium-term economic outlook in those areas is thus beyond catastrophic, the short term is nightmare. America's going to do quite well, comparably

Historically recovery time form depression correlates highly with the amount of jobs lost, in which case US is doing far worse. Short term gdp contraction will probably be higher in Europe due to them taking the restriction measures more seriously, but long term picture may be different. Overall, Eurozone is far less in debt in total compared to the US. US debt will skyrocket beyond Italy 2018 levels even without accounting for gdp contraction.

> So expect huge asset bubbles in the US financed by the wealth of the rest of the world, basically.

Lmao, typical egoist amerifag who took the "greatest country"-meme too seriously, larping