Hi Tom, A friend sent me the following, and I thought you might keep it handy...for the next time someone picks on you for your spelling ;-)
Read at almost any speed............. the human brain is a great computer.
I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdgnieg The phaonmneal pweor of the hmuan mnid Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer inwaht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? yaeh and I awlyas thought slpeling was ipmorantt!
greetings babyb....thanks for the knife report finally we have a point..... ...the students at the B.S.B.S. will take a stab at catching the significance of this report during our first semester....usually the most entertaining part of the year as it includes September and October, two favorite market months here at the school... speaking of salad oil knives..... (...WEB still holds a nice record on that one...)....no or low debt....goes a long way in weeding out those bkcy candidates.... again nice to see you here in the vinyard, bdparts
Mista Parts, Seems like the study showed that catching falling knives provides rich rewards...no wonder you like doing the knife dance ;-)
The folks at Brandes did further research on falling knives which wasn't in the origianal article or posted on their website, but which a friend sent me. In that additional research, they found that knives with extremely low P/BV and P/E ratios experienced higher than average bankruptcy...but with your focus on companies with little debt, you are avoiding those Chapter 11 companies anyway.
They also found that falling knives with smaller market caps tend to post less outperformance than their larger-cap counterparts.
So keep catching those knives...but look for the bigger ones! ;-)