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

To: TwoBear who wrote (9081)	12/1/1999 1:26:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 78625

TwoBear, Re: ANF, that was a clear, clear overreaction for the retailer with the top turns/returns in the industry. When it hit the 22's, I just thanked God that the momentum players bought it in the first place so that they could do such a concentrated sell, and then gobbled it up. Re: AEOS, it's a clear copycatter of ANF. Yet when I go to ANF, I like the clothes. When I go to AEOS, I don't like them. And this is reflected in the ROA, ROE, margins. When I bought ANF at 22 and change, AEOS was more expensive. ANF should command a significant premium. If ever the sector is down again, I'd go with ANF unless AEOS was just much, much more undervalued. Re: the lawsuits, here's my understanding. ANF generally does not communicate with the Street well. ANF as a whole is very equitable, treating its individual smaller shareholders well by holding insider info close to the chest (as indicated by its quarterly SSS reports). Unlike the rest of the companies on the Street. This pisses the Street off. The purpose of the Street is to come off as smarter and hence retain client assets. When they are not allowed that luxury (through chummy and illegal meetings with CFO's, CEO's, and IR personnel), their purpose is defeated. So along comes ANF, and they slip. An insider leaked to an analyst. WHICH HAPPENS EVERY DAY IN THE BIGGEST COMPANIES ON THE STREET. But oooh, now the Street has something on ANF. All that time sitting on their hands with nothing to offer their clients, and then they get a chance to downgrade. It was quite an impressive slew. Many of the downgrades the day after the news broke have since been reversed. But hey, nothing says "the Street" like "churning client accounts." Now, how about the lawsuits? Well, insider leaks, downgrades, depressed share price. Heck, it just had to happen. Nothing a rising share price and continued positive earnings comparisons won't cure. And nothing that would have hurt the company anyway. Actually, I'm surprised that prnnewswire and businesswire allow their services to be abused by the law firms like this - it's basically just advertising for clients to make enough of a class to be certified. Yahoo! Quote should unsubscribe or block these law firm announcements, IMO. Good investing, Mike Mike