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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (3418)	3/10/1998 12:03:00 AM
From: Paul Senior	of 78670

Re: SUNW and UNMG. FWIW, added to my position in SUNW (Sun Microsystems) today. Started initial position in Unimark -- UNMG. Here's the story as I see it: Company "makes" citrus, other juices. Essentially a new management team has come in - bought out the former guy (who was Pres. CEO, and Chairman)@$5.00 sh for his 6% stake. BV is about $5.4/sh., per Yahoo. If this is correct (and I've seen many Yahoo cases where it hasn't been -g-), then either the new guys got a good deal or the former top guy knew very well what he was doing when he sold control for less than BV. During the time of all these negotiations they apparently also brought in an investment firm to help maximize shareholder value. And the investment firm is continuing to work with the new controlling management team. Notwithstanding the perks the new managers (at least some of whom worked at UNMG before their purchase) get with their ability to control the company-- I'd like to believe they would want to see maybe at least a one point gain in the price of the stock from where they bought. $5 going to $6 dollars say in maybe a couple of years. Seems like it might be doable. PSR looks okay, growing sales, not much earnings though. Numbers seem okay in comparison to competitor Odwalla (although I don't have access to the big boys'= Minutemaid, Tropicana numbers or strategy). I bought UNMG at $4 today -- so my bet is a 50% gain ($6) within those two years. Seems like a reasonable expectation to me. 'Course I have reasonable expectations every time I go into a bar and yet nothing ever happens -g-. Paul Senior

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