Mar 16
2009
VALUE INVESTING – BE CRITICAL WHEN USING BREAK-UP VALUE APPROACH
Filed Under (Finance Help) by Admin on 16-03-2009
In times of economic uncertainty, value investing is one of the favourite valuation approaches investors use as it is purportedly one of the safest methodologies. However, investors must be wary and critical before using such an approach because in equity investments, there are no valuation methods without any risks.
With many developed economies already in a recession and Malaysia experiencing practically a pause in growth in 4Q08 y-o-y, investors are likely to be enticed into using this approach for their equity investment decisions.
Crummy manufacturing and production data and continued weakness in housing data were not stopping buyers today. At least not until the last 90 minutes when we saw selling take away the triple digit gains in the DJIA. This looked like another day where bulls were washing out the bears until late-day from a DJIA financial component took much of the wind out of the sails today. But the tech-heavy NASDAQ was in negative territory most of the day. Here were today’s unofficial closing bell levels: