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

To: Michael Burry who wrote (1574)	6/8/1999 3:04:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 4691

Thanks Mike. That gives us a meaningful starting point at least. I have to go back and see what numbers I was looking at, because they certainly didn't look like that. Maybe I was being too lenient on the recurring restructuring charges. They do take an awful lot of those. My strategy was to value Mattel pre-deal and then see if the price of TLC looked in the ballpark as a multiple to sales. It did, so I called the TLC deal a moderate negative (-$2 a share) in terms of valuation because Mattel paid in undervalued stock. The risk to this logic is that the deal blows up. But for Mattel pre-TLC I am calculating a much higher ROE (going back about ten years) than you are getting. I have the annual at home - I'll see if I can find some time tonight to check your numbers against mine and see if we can locate the difference in perception. Your numbers certainly did shake me up and make me want to go back and recheck my valuation work. JJC