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

To: James Clarke who wrote (8130)	9/2/1999 2:02:00 AM
From: Michael Burry	Read Replies (2) \| Respond to of 78820

If you are going to buy a stock with a chart like ORI with the intention of selling it if it reaches a new low I would simply ask why buy it to begin with? I think I admitted it was breaking a rule a few posts ago. Hey, if it can hold another few days, my dividend will pay for the trade. but I would much rather build some conviction as to what the stock is worth, buy at a substantial discount to that, and then wait for the market to recognize the value. That's the noble way to do it. ORI is worth more than now, IMO. The SVP/Secretary/General Counsel thinks it's worth more than 18. But then Deswell's been worth more than 20 for years. And General Cigar is now trading at an enterprise value:next year's earnings of about 3 with no debt. I've seen ORI even out at this level a little bit. Fundamentally, there should be some support here. If not, I'm out less than a few percent. On a less cynical note, if the fall is due to an all-out slugfest for market share, we should see some major consolidation pretty soon. Mike