In my last post I talked about potential buying opportunities in the near future that you might want to be ready for. Part of being ready for a pullback in the market is to have your valuations and company knowledge on standby and ready for when you should take action. Not every company I value will be an immediate "buy". As a matter of fact, most of a value investor's time may be spent valuing companies that are not attractive opportunities at their immediate market price. I still see value in bringing these companies to your attention however; as once you do the work to value a company I definitely recommend keeping it on your radar screen. You're done the hard part, now keep your model updated and wait for the right time to pounce.
If you're a knowledgeable investor you can even profit off of the work you've done to value a company that you aren't ready to buy. This can be accomplished through the writing of options, which will be discussed in a future post.
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