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

To: Michael Burry who wrote (8070)	8/28/1999 6:34:00 PM
From: Mike 2.0	Respond to of 78821

I added more Pepsi and more Fair Isaac yesterday as well. Both Fair Isaac and Washington Mutual were blindsided by the Bank One fiasco, somewhat unfairly IMO. Mike I thought Fair Isaac was in a diff. business altogether Mike. Why would Bank One activity hurt them? I will probably take a position in PEP too. I have some dry powder to deploy. What about Tricon? Noticed some insider buys there too. Speaking of Miller and Nygren and me, I just noticed that Washington Mutual (WM) saw 4 different insiders buy significant amounts of stock at the end of July. IMO, given that the risk here is that there is some trouble behind the scenes that is not now apparent (after all, it is an S&L), the insider buying, which is backed by previous insider buying last year at these levels, is comforting. Looking to add more. Are there "rumblings" of trouble at Wash Mutual? Sorry WM is a stock I have not looked at. Refer me to your website if that answers the Q. Funny you should mention Ross. I was looking at Value Line today and Ross appeared on their screen of stocks with high return on capital. Same true also for Cognos (COGN), a co. with good technology but stuck in the mud at 20, PE 14-15. Clearly the street expectes them to fall behind Business Objects (compare PEs...wow) and others in bus. intelligence mkt. I'd buy COGN but I see no short term catalyst. It does not move up on favorable earnings and if heaven forbid they were to preannounce it would get clipped something fierce. Cheers

To: Michael Burry who wrote (8070)	8/28/1999 7:03:00 PM
From: jeffbas	Read Replies (2) \| Respond to of 78821

Mike, how are you feeling about MWY after the worse than expected operating results. I was appalled at the drop from $60 million to $20 million in home video sales. With that kind of volatility can their forecast of record results in the next fiscal year be anything more than (low credibility) guesswork? I have also noticed that Redstone has slowed his purchases considerably since March.

To: Michael Burry who wrote (8070)	8/29/1999 10:58:00 AM
From: geoffrey Wren	Read Replies (1) \| Respond to of 78821

Ross Stores: I looked into them before, not recently. Here in No. Cal. they are big. When they started they were clearing a lot of dept. stores materials (e.g., Macy's spring clothes that got remaindered out in July), but as a percentage these sales are much smaller now it seems. Sort of like the transition where outlet stores went from selling overruns, seconds, etc, and just became more like a regular retailer. Much of the Ross inventory now is "no-name" stuff now, made in China etc. They are at Market saturation in the Bay Area now. What turned me off about Ross before was the pay of the top executive. It seemed out of line at the time. But maybe he was worth it. I used to follow dept. stores more. I think the industry might be pretty high in an up cycle now. Just some thoughts. Not really recommending or not.

To: Michael Burry who wrote (8070)	8/30/1999 7:04:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 78821

Raised 30% cash in one day today. Sold Tidewater, Fair Isaac, Tricon Global, Washington Mutual, Apple, Pacificare. All still undervalued in one way or another, but in this case I'm just raising cash. Don't like the way a lot of stocks are acting out there. Today 5-year support on Fair Isaac was broken on a downgrade. Looking at a lot of cheap stocks, but seeing a lot of the cheap get cheaper. Anything tied to the economy has been held back for a year or two now, and a lot of them are finally starting to crumble. Looking for a retest of last October's lows - a lot of stocks are nearly there. Mike