Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Investor2 who wrote (8152)	9/4/1999 12:24:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 78822

From a value investor's perspective, there is a very good, depressing story in the September SmartMoney re: the ex-chief at Lindner who evidently value invested his way out of a job. One vignette has him working out on the treadmill, watching CNBC, and just praying for the market to crash and show him right. But then it did crash in late 98, and he lost more than the indices. And then it recovered, and his funds didn't move. Maybe he was just preternaturally inflexible and that was the reason. But tell me that some of us can't put ourselves in his shoes and feel what he was feeling. Mike

To: Investor2 who wrote (8152)	9/7/1999 9:41:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78822

I2: re: NWL. Newell Rubbermaid is a powerful company. At some point institutions will want to own more of the stock. Hard for me to see it now as a value stock though. If earnings are dropping, say to $2.10 and it sells at 16-17x like it has in a couple of past years, then I call it fair valued now. If, on the other hand, it sells for 18-19x like it also has averaged in a couple of past years, there's a good chance for some appreciation. (Stock moves from 32 today to say maybe a 'reasonable' 36-38 average with some chance for retest of 40-50 levels.) I defer to others who can evaluate this thing properly. I see it selling now for psr midway (1.8) in the yearly range it's seen over the past several years (1.6 to 2.1 eyeballed). Given NWL is a large consumer company selling a variety of many small $ items, maybe psr does provide some clue as to what fair value might be. If so, I don't see a bargain right now. (Athough of course, I've been wrong many, many times.) Anybody else with an opinion on NWL?