Analyst: I think that this maker of ball bearings is quite attractive because of its strong operating momentum, $500mm net cash position, and dirt cheap valuation of 6x fully-loaded FCF.

PM: WHAT IS THEIR SUBPRIME EXPOSURE?!?

Analyst: They don’t own subprime. Or sell houses. Or sell into housing-related markets. Or have variable rate debt.

PM: OK BUT ARE THEY EXPOSUDED TO THE SUBPRIME PRESSURE ON YIELDS?

Analyst: No

PM: I LIKE THE NAME BUT WANT TO OWN IT 10% CHEAPER

Analyst: They’re buying back 10% of shares outstanding this year.

PM: WHAT ABOUT SUBPRIME? ANY EXPOSURE THERE?

Analyst is now offline.

(Am I the only one that don’t think subprime is that bad? Look at how much GS made by shorting subprime for their proprietary trading)