Re: Walk Away From Your House by Jim Cramer
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Why would you be buying into a falling market? If valuations look good by your analysis then wouldn't it be more sensible to wait for some confirmation from price action that an upward move is more likely?
Bottom fishing can prove profitable if you make the right calls at the right time, but I doubt it provides a good risk:reward
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Are you suggesting I'll make a bigger profit if I wait until it goes up so I can pay more?
To answer your question, I think the current price is idiotic, the remaining excess cash flow is clearly going to be more than the current trading value. I don't know when the price will stop being idiotic, but when it does it will quickly move up by around 100%. I can't predict when that will happen, certainly by year end, or by early next week. So I buy when I can.
And in this case, the company is going to dividend those cash flows directly to shareholders. So I really don't have to care what the market price is once I've bought. I expect to have my basis returned to me by years end.
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