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

To: Allen Furlan who wrote (9139)	12/5/1999 10:44:00 PM
From: Michael Burry	Respond to of 78701

Allen, ACO would've been great cheaper, but now I'm just thinking that I'm being compensated for my risk as an arbitrageur. I think I'll pass based on the scope of the unknowns. It's interesting that they're being careful to quote the sales of the remaining enterprise, while we know what they're selling is their higher-margin business. I'll put it on my list of things to investigate. Now, if I could find a company that was where ACO was at last Jan-Feb, with a liquidatable $14 dollar asset, a remaining dominant business worth $4-5, and selling at $8 1/2, then I'd be in it like Flynn. As far as arbitrage, I held the Case position in my mom's account all the way until the close. Looks like about 5 months for $7.75 on a 47.25 base. That's about 39% annualized. The tech focus of the market will let these types of yields happen. ACO may be another one. But with good utilities at 5-8% and REITs at 10-15% and an industrial company or two at 10-11%, there's more competition out there for my income/crash resistant money. Good investing, Mike