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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote ()	11/9/1999 12:48:00 PM
From: LauA	Read Replies (1) of 78627

I bought some LR today. Lanier World Wide has all the attributes of a successful spin-out. It's been in business as an office machine company HQ'ed in Atlanta since 1934. Operated as a division of Harris since 1983. It has an identifiable brand name and continuity of management. The Form 10 shows annual revenue of $1.4 with after tax profit of $44 million. They've been saddled with $500 million of debt as part of the spinout. Half their business is international. They represent good products - "best of breed"; they have high quality longterm clients - MMM, Kinko's, Abbott Labs, NASA. 90% of the stock spun off to current shareholders. HRS holding 10%. Started trading on a when issued basis at $6 last week. Formal trading began yesterday on NYSE. Currently selling in the $3 range. All sorts of structural reasons for Funds to sell. None to buy. Recent history of Danka and IKON sobering. XRX languishing. So here's a growing business system company selling at a PE of 6. Only missing element might be those insider stock awards that sort of insure stockmarket success. Not quite a Graham obscene value play, but perhaps good enough for Greenblatt. Lau

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