tag:blogger.com,1999:blog-5381728860768227475.post5897771315419399333..comments2009-03-23T00:13:39.324-04:00MG (moneygardener)http://www.blogger.com/profile/09118524634677340463themoneygardener@gmail.comBlogger6125tag:blogger.com,1999:blog-5381728860768227475.post-21011197248230201442009-03-23T00:13:00.000-04:002009-03-23T00:13:00.000-04:00As anon mentioned above BV &lt;&gt; LV and that definition from Investopedia is crap. Why you sourced it makes me wonder if you know what book value is or many of the considerations around using it as a valuation metric. Since MG didn&#39;t reply about BV I will suggest a silly simple case. Imagine firm A overpays by a factor of 2 for firm B (according to B&#39;s BV) the difference goes on A&#39;s balance sheet as goodwill. Since Mr Market knows A overpaid for B, the new BV of A is some number, the LV is some lower number. Make sense?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5381728860768227475.post-80299968717070381142009-03-08T01:23:00.000-05:002009-03-08T01:23:00.000-05:00Book Value and Liquidation Value are not the same thing. Case in point, Circuit City. Book Value Per Share was $6.40. Liquidation value was insolvent. Where did they end up? Answer: Insolvent.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5381728860768227475.post-40101770915142078112009-03-08T01:07:00.000-05:002009-03-08T01:07:00.000-05:00Book Value and Liquidation Value are not the same thing. Intangible items carry no value during a liquidation sale.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5381728860768227475.post-48758872333723890412009-03-08T00:18:00.000-05:002009-03-08T00:18:00.000-05:00Book is only as meaningful as the valuation of the underlying assets. Are you saying that these companies are buys?<BR/><BR/>TD, for instance, has made 2 large acquistions in the US. What's their mortgage portfolio look like? We don't know yet. Personally, I'd still avoid this name.<BR/><BR/>GE. Any book valuation (at this point) cannot be trusted. Over 50% of GE was GE Financial. Nuff said.<BR/><BR/>Ford. Are you kidding me? Next....<BR/><BR/>Dow Chemical and CP Rail are probably the safest on the list.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5381728860768227475.post-1136604124090034292009-02-27T08:12:00.000-05:002009-02-27T08:12:00.000-05:00I think that book value gets a little fuzzy when companies derive earnings in the financial arena.MG (moneygardener)http://www.blogger.com/profile/09118524634677340463noreply@blogger.comtag:blogger.com,1999:blog-5381728860768227475.post-56001271518422276032009-02-27T05:50:00.000-05:002009-02-27T05:50:00.000-05:00There are a lot of companies trading at surprising discount to BV as earnings come down and price follows (P/E contraction). One important lesson I learnt from observing the 2000-2002 market was although many companies traded well below their book value the ones who were increasing their book value over that period of time did better in gains to their valuations when the market turned. There were a lot of companies value investors got tricked into buying based on low price-to-book that had declining book values over a 12-24 month period.<BR/><BR/>The stocks you've mentioned though, in the most part, should be companies that are able to increase their BV despite market conditions.Nurseb911http://www.nurseb911.com/noreply@blogger.com