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To: Paul Senior who wrote (8026)	8/21/1999 6:38:00 PM
From: Paul Senior	Respond to of 78753

And fwiw, added slightly to my position in Del Webb (WBB) Friday @ 20 7/8 as stock price comes down to book value ($20.9/sh). Relatively low pe, increasing revenues and trading on low side of past psr and p/bv numbers. Negatives are: increasing amounts of debt -- lots more debt -- and being in the housing sector- an out of favor area wherein investors perhaps expect a cyclical top to boom market and negative effects of interest rate hikes.

To: Paul Senior who wrote (8026)	8/21/1999 11:25:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78753

What I'm saying about ESBC's debt is that it is secured by their credit card receivables. It doesn't matter to the net-net calculation, but in terms of my margin of safety it matters a great deal. I am very wary of net-nets that have a lot of debt. I checked to see if there are signs of the credit card portfolio blowing up, and there aren't. My point is simply that this is not a company financing itself irresponsibly. There are two businesses - a conservatively financed retailer, and a sensibly leveraged finance subsidiary. JJC