Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Senior who wrote (9914)	2/8/2000 7:22:00 PM
From: Michael Burry	Read Replies (4) of 78666

And FWIW, my buys/shorts/sells: Shorting stocks where I can see the bad news confirmed in the numbers. Amazon.com (short at 82 5/8 again today) is pursuing some creative financing to get the cash to keep going. Selling euro-dominated bonds follows an Australian issue follows equity-linked debt follows who knows what. Exodus (short at 129) is in a capital-intensive business with high start-up costs and business inputs that have short half-lives. The barriers to entry are minimal in the long run. Exodus' major shareholders have sold big-time. The company should be raising its needed additional capital by selling inflated shares but instead is borrowing $1billion plus at 10%+ rates. Intel is one of the many targeting this same market. Pre-Paid Legal (short at 24 3/4) I've gone through before (I shorted it from $37ish down to 24ish last year). Cash flow continues to lag far behind reported net income, membership retention stinks, and the CEO is engaging in borderline stock promotion while he steadily sells. Many in the investor community misunderstand this stock. Bought Sara Lee, now trading at an EV/EBITDA of just over 8, and with return on capital greater than 25%. Management's initiatives to maximize return on capital and follow an EVA-type strategy over the last few years have been successful, and the company has been buying back stock with its tremendous cash flow. Its debt is rated AA-. Solid, defensive stock in an industry given no respect by the market. Bought Hasbro in addition to my Mattel. Hasbro is another one with an EV/EBITDA just over 8. Tremendous brand equity and a good future strategy, IMO, with its games.com. On the Buffettology thread early last year I made a strenuous argument against Mattel and pointed out Hasbro's better record of return on investment. Well now they're both so cheap I'm in both of them. Sold Philip Morris (MO) as it makes new lows.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next