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Strategies & Market Trends : 50% Gains Investing

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To: Dale Baker who wrote (18035)5/7/2000 4:26:00 PM
From: MadharryRead Replies (1) of 118717
 
I don't agree with your statement Dale. The reason we invest is to uncover undervalued situations and wait till the market accords them a value we believe to be more appropriate. My experience has been that in about 90% of the cases when I invest in a company and pay nothing for the core business I end up making money. My losers were impacted by some combination of inept management, money losing core operations and litigation. In fact I have made money on ALSC several times but each time I have subsequently reinvested. ALSC actually looks better than most of my investments of this type because their core business is now improving and profitable.
IN addition they have the venture capital part of the business in which they have now had 2 substantial winners in a period of 12 months. with one being sold to Broadcom and one to Vitesse so I am giving high marks to management here. Lastly management owns a significant piece of the business and I see that as a plus as well.
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