Comments on: Value Investor’s Guide to Handling Volatility

By: arohan

arohan — Tue, 20 Oct 2009 18:02:26 +0000

Jae,

This is a very important topic for value investors. I have found that as I gravitate towards small and micro caps, they tend to be thinly traded and hence very volatile. Does it mean that the investment thesis is incorrect? If you are confident in your analysis, give it time and use volatility to your advantage to acquire more shares.

By: jeff

jeff — Tue, 13 Oct 2009 07:08:57 +0000

I am glad to see that you are a fellow shareholder of DCU!
.-= jeff´s last blog ..British Government to the market: "we’re not idiots" =-.

By: Jae Jun

Jae Jun — Mon, 12 Oct 2009 16:15:25 +0000

Hi Paul,

The catalyst is simply that advertising has been going back up and it will result in higher cash flows. Cash for clunkers showed how radio advertising is effective. There has also been a big increase in ads from financial firms.

By: Paul (aka augustabound)

Paul (aka augustabound) — Mon, 12 Oct 2009 11:20:31 +0000

Hi Jae, nice post as always.
I was looking at a couple of the stocks you mentioned and noticed Salem Communications is up close to 300% since July.
Any idea what the catalyst was for this? Earnings seem to still be trending down but they have nice cash flow for a small company.