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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (7442)	6/7/1999 4:05:00 PM
From: Michael Burry	Respond to of 78639

Jim, Funny, I looked at the same thing and didn't come to the same conclusion. In any case, I'm talking contrarian value here. I'm not saying it's Buffett, and I'm not saying it's Graham. The stock is down 50% with insider buying at this level, which happens to be big support going back years. No debt, a quarter of the share price is cash, and the company has always shaken out of this recurrent funk that it seems to hit with regularity - precisely because it leads the industry. Your interpretation might explain why the stock has had trouble adding big value over time, though. I'll certainly give you that, and revisit it, but it probably won't change my mind as much as the WSJ story about what a ditz the CEO of MAT is. Mike

To: James Clarke who wrote (7442)	6/7/1999 7:50:00 PM
From: LauA	Read Replies (1) \| Respond to of 78639

Your point about options as a real shareholder cost is well taken. Charlie Munger spent a fair amount of time at the Wesco meeting talking about this - particularly with SW Companies. When I do the arithmetic on ADSK, it looks like they award 5% of the stock per year in options. It appears that most of the management shares are priced in the $40's. Previous years show much of the overhang from $27, with ~1/2 above $40. This type of compensation offers the absurdity of a senior partner of Wilson, Sonsini on the board who is shown owning 44,000 shares of which all but 1000 are options.