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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Mr. Pink who wrote (14261)10/6/2000 12:11:05 AM
From: MAELING  Read Replies (1) of 18998
 
Pinko, someday I'll teach you about value traps.

There's a reason that CLD and CRG show up on screens - Mr. Market assigns a big discount to byzantine corporate structure that appears designed to obfuscate self-dealing. Mr. Market tends to sneer at small players in an industry sector that is throwing too much capital at a service business that produces a commodity product with few barriers to entry.

These companies are priced below their cash value because during the past couple of years management has not hesitated to have the corporation buy out the personal investment of management and friends.

Andrew swallowed Cotter's patter in a big way, and is trapped. He couldn't sell now if he wanted to.

Cheers,

Maeling
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