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

To: Madharry who wrote (8487)	10/3/1999 8:34:00 PM
From: Daniel Chisholm	Respond to of 78594

As a matter of fact, I have thought about FTL. Here's a letter I wrote to a friend a couple of weeks ago. I haven't actually done any work or digging on it, though (I am such a lazy b****ard!) Hi xxxx, Real Soon Now (TM) I hope to dig into two ideas that appear to be promising enough to be worthy of some serious investigation. The first is to short Sunbeam common (theory: they got so loaded up with debt that they are so impossibly behind the power curve that there is no way, no how that their common equity can possibly survive). The second one is to investigate Fruit of the Loom. A nice non-Rocket Science company and industry, the thing that caught my attention here is that their common still has a decent capitalization (ca. $275M) yet they have lots of debt and their ten year bonds (7%'11) trade in the 40s. Not sure if there is necessarily a bond-buying or stock-shorting opportunity here, but it does look like there is enough of a disconnect somewhere that it is probably worthwhile to spend some time analyzing the company. - Daniel