Hi Sorry for the long delay in posts. I was on a 2 week vacation in Aug.
It's been a week since I've come back from vacation and I've been looking. Hunting for good companies to buy at cheap prices. But to no avail. I can't seem to find companies that satisfy that criteria. It's kinda frustrating.
There are quite a few companies trading at really low price to book ratios like Seahawk Drilling Inc. (NASDAQ: HAWK). But after a lot of research, I find that there is a reason they are trading that way. The industries they are in face serious challenges and their assets might not be that valuable. Seahawk has a price to book of 0.5. But 10 out of 20 of their jack up oil rigs do not fit the depth specifications required by their largest client, PEMEX. And the average age of their rigs is 28 years old.
Sorry to sound so pessimistic but I really feel that this rally is starting to over price stocks for their current economic fundamentals.
I've been reading that quite a few hedge fund managers are rather pessimistic at this as well. For example Paul Tudor Jones.
As for now, I'm going to keep looking but maybe not buy anything yet.
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