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

To: peter michaelson who wrote (8670)	10/18/1999 7:08:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78656

Peter, VUL is interesting, sort of like a sleepy closed end fund is interesting. After reading the 10K, I concluded that this is really less interesting than it seems. The cost basis of its assets is negligible, so they might have to pay taxes before you could get your hands on the money. Its operating businesses are unattractive. There does not seem to be ANY strategy whatever to eliminate the substantial discount to asset value short term. That said, they are gradually reducing the stock outstanding with a buyback, cutting the O/S every year. Mathematically, this plus being able to buy the stock at such a discount means that this is probably quite an attractive alternative to buying an index fund, if you are willing and plan to hold it for many years -- especially since it has fallen quite a bit under the S&P trendline, for no apparent reason: quote.yahoo.com