A Worthy Example of How to Add Values to Your Stocks (Part 2)
A Worthy Example of How to Add Values to Your Stocks (Part 1)
The assembly of the turn-around team, balancing of cash flows, and core strengths leverage, are the 3 pillars on which affirmative action can be taken to make sick stocks look up. Doctors are trained that the ABC of emergency care of humans refers to airways, breathing, and circulation: the ABC of nursing critically ill stocks is assembly, balancing, and core strength. Now we can have a look at how well Cerberus has done with Chrysler.
Personal Finance Lessons from How Private Investment Firms Treat Stocks
Cerberus has handled Chrysler with the assured master strokes of a Professor of Emergency Medicine at a Grade 1 hospital! It has assembled a new management team that is an artful blend of experience in the highly competitive business sector of home supplies, with some of the best brains in the global automobile business, and dosed it liberally with some top old dogs of Chrysler. Cerberus has refused to dole out cash to keep operations alive, forcing operational management teams to eke out every last drop of efficiency in balancing cash flows. Chrysler has stolen a march on its rivals in the process, preferring capital-free associations abroad to extravagant new investments in owned facilities. Finally, Chrysler has turned the spotlight back on its dealer network, a much under-valued asset in this business. Traditional engineering values of Chrysler have been preserved in a way that must please the spirit of the founder!
It is a pity that you and I did not buy Chrysler stocks at the same time as Cerberus. All of us can however, take leaves from their books, and use the principles of turn-around management for our own personal finance situations. Getting the right skills behind portfolios, nursing cash like new-born babies, and pitching tents on plots of strength, can do as much for any individual as Cerberus has achieved with Chrysler. The best is yet to come from these moves, and we may expect a Chrysler renaissance in the near future.
The Art of Picking Undervalued Stocks
The Cerberus system of spotting undervalued stocks remains a mystery. People who know these secrets rarely divulge them! The sheer numbers of stocks listed on any Exchange, OTCBB bulletin board, or pink sheet, makes the game akin to fishing in deep waters: you never know when you may land a record catch! Stocks have to be studied in detail before anyone can conclude that they are undervalued. Price to earning ratios can be deceptive in today’s volatile markets, especially if used in isolation as a sole yardstick.