centros sound business model

I personally think that people who invest in companies that fail to make money for their shareholders is more risky than businesses who constantly make profit for their shareholders.Chart trading on spec stocks (i.e small mining stocks,technology and biotechnology stocks don't always work.)

Investing in small mining companies that dont generate any sales or profit, can be regarded as some sort of ponzi type investment scheme.i.e pyramid type investing believing that the next person will buy at a higher price than you.At the end of the day share price will and should follow the intrinsic value of a business in the long term.

Fluctuations in share price give investors an opportunity to buy or sell in that particular company.

Companies that have a history of consistent profit making over a 10 year+ period are more likely to repeat this pattern over the next 10 year+ period; providing their gearing levels and business model fit accordingly into the current environment.

Centro have a sound business model that consists of 700+ malls in Australia and the U.S.The sub-prime crisis and global credit squeeze added to the mess.

Don't focus on current share price unless your a day trader who likes to gamble on 1 and 2cent movements.Their might be an art to day trading but you'll end up being 50% right and 50% wrong.

Buy and hold Centro for the medium to longer term and believe and meditate on the positive side of the business rather than listening to the continual b.s that your local T.V stations and Newspaper feeds you with.

This whole talk of our economy and the u.s going into recession is all caused by the media in the first place.You keep speaking negative words about a nation, chances are that nation will follow your words.We live in a thought world.

A man's way of doing things is the direct result of the way he thinks about things.

So the next time people want to talk sh#$ about Centro and Centro not surviving and going to the dumps; tell them to study previous business performance over a 5-10 year period and work out the companies intrinsic value by a reasonable valuation model.i.e. return on equity divide by pre tax required return multiplied by equity per share.

If your intrinsic valuation formula is right, then your valuation should be a lot more than current share price.