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Non-Tech : Lone Star Steakhouse (STAR)

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To: Michael Coley who wrote (62)8/19/1997 12:26:00 PM
From: David M. Selman   of 175
 
Dear Michael,

Thank you for your comments on these restaurants. I bought star
primarily because it meets my bean counter's stock cut. He has a
stock screen he has developed that seems to work quite well at finding undervalued companies. He looks at things like ROA, ROE,
net profit, future earnings, history, etc. There are very few companies that pass his test and are undervalued at the same time. After all, what's the point of buying fully valued stock if you can find something else that is trading at a big discount. star passed his test, but he's not too hot on the restaurant business. I bought some because I'm too heavily invested in technology and it is hard to find what appear to be bargains.
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