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

To: Paul Senior who wrote (8654)	10/15/1999 10:19:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 78704

Paul, on SEMI: The 4 biggest problems for the stock from my point of view are a totally discouraged shareholder base, a family mgmt that actually is OK but does not spend time doing anything promoting the stock, the obvious high debt/equity ratio, and lack of a big-6 acctg firm (and the possibility that I have commented on that they may have a too generous variable compensation plan that eats up too much of additional gross margin dollars from increased sales). I think the total capitalization/sales, total capitalization/gross margin, price/tangible book, price/net-net (about 75%) make up for this. You don't get these things without blemishes. Also, as I have posted, I suspect some other, larger distributor will get around to them before Wall Street does in this consolidating industry, where SEMI is probably the largest independent distributor of semiconductors, a much more fashionable category than a year ago. However, because of the negatives mentioned I don't think you have to be aggressive on the stock. To add some perspective, on a scale of 1-10, I would rate NH at 9, which we all discussed, a 10, EBSC at 6, which Jim has plugged, an 8.5, SEMI at 3 1/2 a 6.5, and ELTX at 3 1/2, which I mentioned casually yesterday (and is not a traditional value stock) a 4.

To: Paul Senior who wrote (8654)	10/17/1999 12:36:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78704

CMND: Yahoo shows: selling price 1 3/8, yet cash $2.38/sh , no LTD, bv $3.7/sh. For those who wanted a stock selling below cash value, this could be one to check out. I've not done any further research. I've not got a position. And the way my microcap net-nets (or cash rich companies looking for a business) have not been working out for me lately, I'd rather deploy funds in other value areas, esp. as there so many interesting opportunities now.