Re: names, SFAM, MWY
First off, there's only one MB or Michael B.
here. Just call me Burry if I become a regular.
MWY came to my attention via the spin-off,
and when it broke through its 16.5 support,
I thought, "I wonder how low it'd go?" I try
to wait for the absolute bottom - where when
I look 3 years out the price looks just plain
stupidfunnyridiculous. I just bought UST
on those grounds, and now MWY. This
thread came to my attention when I text searched
SI for MWY and MB was the most prolific
poster. You may be able to get MWY at 12
again. In fact, I would say it is likely, on
both technical and weak shareholder grounds.
Re: SFAM. That and SMOD were my two
favorite stocks when I got onto SI in early
96. Especially SFAM had a high quality
thread of contrarian, sound-minded thinkers
during that summer sell-off. Mr. Sam
made us all a lot of money. But it seems to
me the end-game for a SFAM is M&A,
since they will never ooze the cash flow
required for me to hold it long term. If they
don't attain the proper economies of scale
before an industry leader like AMAT catches
up, then SFAM is splat on its windshield.
IMO, this applies to most capital- and tech-
intensive small caps competing in vicious
commodity-like businesses.
That said, even splattable small caps can
become valuable, and if they do, an acquisition becomes more likely.
I'm looking for SFAM to get down below book.
That'd be stupidfunnyridiculous for me. For
now it's on my watchlist.
Good Investing,
Mike |
