Graham and Doddsville -- Value Investing In The New Era Message Board

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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (854)	10/1/1998 5:28:00 PM
From: Allen Furlan	Read Replies (1) of 1722

"Bargains of Historic Proportions?" is the lead on a Glasssman article in todays Washington Post. He cites Bernstein & Co. as accumulating commodity companies at bargain prices.(paper,aluminum,chemicals). I found this interesting as it reflects my thinking that if the world does not implode some of these companies will be major beneficiaries when capacity is wrung out and the world economy resumes its upward course. Very specifically, I have been accumulating Borden Chemical and Plastics at unbelievably low prices(between 3-3.5). Here is my question. The company sports a nominal book value of about 5 dollars, but the un-depreciated production assets are about 17 dollars a share. This explains how the company could have generated a cash distribution of 4.66 per share in 1995 and averaged over 2 dollars per share for the past 10 years. The question is how does one ferret out companies which may have gold buried in the balance sheets? Any thoughts and comments would be appreciated.

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