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

To: Michael Burry who wrote (7811)	7/23/1999 12:17:00 AM
From: James Clarke	Read Replies (5) \| Respond to of 78825

I'm looking for somebody on this thread who knows more about health care than me - i.e. somebody who's been to a doctor in the last ten years, or somebody who is a doctor...Mike! Anybody looking at Steris (STE)? On the surface, looks like a razor-blade model. They lead the market for instrument sterilization systems. As I picture it from reading the 10-K, doctors across the country have this thing in their office that they sterizile their instruments in, and Steris makes money on the goo they sterilize it with. Then they buy more goo and Steris makes more money. Their return on equity is very high, but the last quarter showed only 6% growth and the stock tanked. Can anybody help me fill in this picture? The stock trades at 15 times earnings, way below its historical multiple. I know, not the typical JJC stock, but I'm intrigued by the business model. On more typical JJC stocks, LKI has retraced its gain from 11 1/2 back down to near 9. That's a buy below 9. And Clayton is looking very weak, but I don't care because I think I know roughly what the company is worth ($16-22) and I consider management simply excellent. Clayton is a buy below 14 (It currently trades at 10 1/2 and is falling 1/8 a day as everybody is worried about the coming quarterly announcement.) I have absolutely no intention of selling my shares, and am looking to scrape together some cash to buy more. If there are any Mattel fans out there, the conference call today was lame, so I still think you will get another shot at 22-23. JJC JJC

To: Michael Burry who wrote (7811)	7/23/1999 1:08:00 AM
From: Paul Senior	Read Replies (3) \| Respond to of 78825

Making the following changes: Selling Schlumberger (SLB) at 61+ vs. buy @48 in 9/98. It is no longer a value play imo. Buying Budget (BD) as it craters to a new low. 2nd largest consumer truck rental agency, 3rd largest car rental agency. Stock collapse is unjustified. OTOH, I've been so wrong on this stock for so long, that perhaps the collapse is justified all right. It's just me who's clueless as to the justification -g-. Switching out of KLM and buying a very little UAL. KLM may have difficulty maintaining dividend. United Airlines is selling below book value and below 8x earnings. Okay price for a dominant air carrier (imo). Selling PFX (13/16) vs. buys last year between 14 and 2. Big oops. Capital losses to offset capital gains. Adding to CDN (12). Will participate in .18 micron chip technology. Billion dollar company with 4 thousand employees and tons of turmoil in the executive suite. BTC. Banctec. A takeunder! Deal closing I believe today @ 18 1/2. I bought and posted @ 24+ in 10/97. Taking small loss on early positions but larger profits with risk arbitrage at 16+. FWIW.