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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote (1818)8/28/1997 11:09:00 PM
From: Terry Maynard   of 78764
 
STAR - LoneStar Steakhouse may be a value Stock. It has a PE of 9.5 using trailing earnings. Its P/Sls is 1.3 and P/BkVal is 1.3. The price was recently knocked down because management preannounced a shortfall of .10 to .13 in Q3 earnings. The cause is a drop in comparable store sales of 11% for the qtr and 7.7% for the year. One reason for this is the competitive casual dining makret and the fact that STAR has not advertised and the competition has.

I think that this may be a value play and would appreciate other opinions and analysis.

Thank you in advance.

Terry
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