In few words- Traders doesn't know the value, but Investor does. I call it a Value Investing 101- Realizing the Intrinsic Value ahead of it's time. As WB said @ http://www.berkshirehathaway.com/ownman.pdf
In other words, a smart investment is one where you are buying a stock for less than its intrinsic value.
Follow the Value, Price will follow by itself. KAY is Creating value, PPS will follow the Value.