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

To: James Clarke who wrote (8427)	9/29/1999 10:16:00 AM
From: jeffbas	Respond to of 79000

Thanks for your response, Jim. I find EBSC tempting. However, it reminds me a great deal of Strawbridge Clothier, an old line, family run Philadelphia chain, whose stock I owned for quite a while many years ago. Strawbridge also attracted value investors, but never quite could get it right. It was eventually sold at a not particularly attractive price to another chain. If this follows a similar scenario, you will probably see 50% on your price but not 100%. An acquirer probably wants his own "margin of error" to cover costs of closing some stores and sprucing up others to his style and format. I do not see any downside risk here. However, since the market is rapidly creating better values elsewhere, EBSC is becoming relatively less interesting by comparison.