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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Roger A. Babb who wrote (1730)1/27/1998 11:27:00 PM
From: Ben Graham  Read Replies (1) of 18691
 
Interesting week so far!
Dow up 100, Nasdaq unchanged, yet many of our favorite high fliers are down 5-10 percent. I get the feeling that valuation psychology is shifting very much in our favor.

Here are a couple of unloved stocks that I'm sure you are familiar with:

SHN - seems to have bottomed at 3, founding family has recently forced several board changes, new CEO restructuring management, closing unprofitable stores.

APSO - selling their Applebees outlets to concentrate on several other chains that they are developing. These guys have been smart operators in the past and I would assume they know what they are doing now. Stock down from 20 to 11 (now 12) on the news.

I have taken small positions in both. Do you know any of the insiders?
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