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

To: Michael Burry who wrote (8744)	10/24/1999 4:04:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78633

re: SNH + more on net-nets I wrote my response on SNH before Mike wrote his. It looks like he is saying the same thing I did. All credit for this idea goes to Mike, not me. He did the work, I am just replicating what he has already said, though my post was based on my own read of the prospectus and other things. Contrary to what I said a few minutes ago in my analysis, I don't think I need any more information. The more I think about it, I just conclude that SNH is a buy below 15 (and it trades at $12 3/4). Do we have a third? On another topic, I promised one micromicrocap (that means less than $10 million market cap) net-net yesterday, as soon as I get a position. I found another more sizable ($100-500MM range) net-net last night that also looks like a virtually automatic buy (consistently profitable, stable business, signficant dividend yield, 2/3 of net-current assets) if a few things check out. Hold me to both of these within the next two weeks. For the last four years I have very rarely been able to find more than one of these (i.e. net-nets that I would still buy after reading the financials - I have very strict criteria, not all quantitative) at a time, and now I've got four or five for the first time. Tells you something about what the "broader market" is doing, or maybe it tells you I'm just looking for them more methodically as I have become convinced that this strategy is by far the most profitable arrow in my quiver - and one which may not be correlated to the S&P 500 index. I have never lost money on a net-net, I think because I only invest in those that meet much stricter criteria. Every one has gone up 30%+ within six months. The problem is that I have only been able to find one of these every six months. That appears to be changing. Maybe in a few months I will have a stable of ten of these, and then there would be the possibility of achieving some diversification and really building what Ben Graham would have called a portfolio. A work in progress if Mr. Market cooperates. JJC