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

To: TwoBear who wrote (7500)	6/9/1999 12:21:00 AM
From: Shane M	Read Replies (1) \| Respond to of 78658

I guess I just can't get over the trailer trash image. I guess I don't have that image at all. There were a lot of mobile home parks where I grew up and a lot of my friends lived there. Many others lived in doublewides. I never thought much about it and most of the families were pretty normal. Not the stereotypical image I think much of the country has. Incomes just aren't very high in much of rural America. BTW, I was reading through one of my Champion annual reports and it seems the Redman merger mentioned earlier occurred sometime in '97. What part of Big Orange country are you located? I'm in Nashville but am originally from Kentucky and still pull for "the blue mist" as the Cats are called down here. I don't think I'm going to be able to convert to following UT though. Shane

To: TwoBear who wrote (7500)	6/9/1999 12:54:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78658

Jim Clayton has put up 17% return on equity for something like 10 years in a row with a conservative balance sheet. And there is no sign I can see that that track record is coming to an abrupt halt. You can buy CMH for 11 times earnings. I will go on record again and say that the stock is worth $20 a share. (It trades at 11 and change) I bought Clayton at its low in the fall of '96 but at the current price the only money I have made on it was a sell of part of my position at a peak a year or so ago. Their earnings per share are about 40% higher than they were when I bought the stock. Not a great investment so far, but I don't care. I have a live order in to buy a profitable net-net at about 50% of its net current asset value, but the damned market maker won't give me a sixteenth off the ask. The market maker raised the ask price on me twice today without trades when he had an order for more than the day's volume at a reasonable limit. I think I might pull that order tomorrow and just buy more Clayton. Unless I am missing something big, and have missed it for three years watching every quarterly the company files, I am looking at a double here with very little downside. OK, talked myself into it. (But that means you all have got to wait even longer to find out what this net-net is. Sorry.) If you don't have a copy of Clayton's annual report, get it. And focus on the 10 year historical financials page. It doesn't get much better than this at 11 times earnings. If you're worried about what a recession or rising interest rates does to this company, the 10 year financials give you a chance to see what the business did last time interest rates were rising and in the last recession. No, there is no catalyst. The company has grown its earnings all but one quarter in the last ten or twelve YEARS. They have a conservative balance sheet. They don't miss quarters. In this market that loves predictability and high return on capital, I still cannot understand why this stock does not trade at 25 times earnings. That would be about $28 a share. Tell me where I'm wrong in this analysis, because I think I am looking at a dollar bill for 50 cents. JJC