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

To: LauA who wrote (9595)	1/10/2000 12:52:00 PM
From: Paul Senior	Respond to of 78740

LauA. Yes, that kind of sums it up. I don't follow your point though about crediting no superinvestor with more than 27 years experience. That's a "huh?" for me. -g- I wish I knew what truth was. Or even purpose. I've got 30+ years investing and it's taught me to diversify. Here, this discussion on this thread, if the purpose is to help each other or figure out what works, what is most helpful, then is there one value investing style that is better/best? If purpose is to make a reasonable return is one way better than another? If purpose is to get rich is concentration the best route? Should concentration/diversification change as investing experience or lifestyle life goals change? I have no answers. There's something else also tied into the diversification/concentration discussion. Certainly, the time that must be devoted to an analysis of each situation. But the variables which are significant in making the investing buy and sell decisions are different too. Which suggests that there is some basis for thread readers to give extra attention to a particular stock when different style value investors reach the same positive conclusion about it. We talk of the 3 thread buyer rule, for example.

To: LauA who wrote (9595)	1/11/2000 12:31:00 AM
From: James Clarke	Read Replies (3) \| Respond to of 78740

OK, you don't want to buy a basketful of net-nets? How about just one. Sorry, but a day late. Government Technology Services, a computer distributor to government accounts, trades as GTSI. This has been a net-net off and on (mostly on) for a while now and it has always been on my borderline buy list. Net-net value is about 4, and it was trading under 3 last Thursday when rumors of a deal with Redhat to distribute Linux started to come out. I bought at 4 at today's open and it closed above 5 on huge volume. Maybe its too late, maybe not. I just looked at this as 1) if you can't beat 'em join 'em, but on my terms; and 2) an asymetric risk-reward in the very short term. Whatever the economics of distributing Linux, here we have a stock with a downside of about 3 that could have a reasonable shot at an exponential move if the day traders were to discover it. It has a very small float. The rumor alone has nearly doubled the stock already, on building volume. I know, not a usual Jim Clarke type pick, but I did purchase it right at net-net value. Just bought a small amount to see what happens. Probably at least worth watching to see if value and Linux can mix.