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

To: CrazyTrain who wrote (8250)	9/14/1999 12:29:00 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78825

Monte Friesen: regarding FNF and value. The simple answer is yes, FNF is a value stock. The more complicated question is: should it be bought? I do not have a good answer for that. For anybody who is thinking of simply buying FNF, he/she should carefully consider some alternatives. I have posted on this thread a couple of times about CTZ. Which now is in the process of being acquired by FNF, as you mentioned. But what you didn't say, and what is important, is that the buyout is for FNF stock valued at $52. This while CTZ trades today for $40 per share. IF, that's IF, one believes the offer will be completed and at the agreed upon terms, in my opinion, anyone and everyone who wants FNF should buy CTZ. I'm betting the deal will be consummated, maybe for a lower price than 52 but at a higher price than 40. I've posted here that I have upped my CTZ position. (I'm still not sure though if I'm going to keep all or even part of the FNF stock if/when the deal closes.) Another stock in the title insurance business should also be evaluated by potential value investors, imo. And that's FAF. There are other companies out there too, but I've focused my attention on FAF. FAF is (per Yahoo) selling about at book value, has (right now anyway -g-) a very good ROE, sells at its lows (they all do), has some cash and not too much debt. It's also twice as big ($3B sales) as FNF and more diversified (outside of just title--which may or may not be a positive). (I've posted here that I've started a position in FAF.) Possibly all this is irrelevant. These stocks all seem to have fallen together. Maybe when the cycle turns (assuming it does), they will also all rise, so trying to determine which is the best may not be helpful to investment performance. All just my opinion, Paul Senior