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

To: Archie Meeties who wrote (9689)	1/20/2000 12:59:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78704

Blair Corp (BL) trading around 13-14 with about $19 of net current assets and $24 of book value, profitable with a big dividend. They announced a few days ago that they repurchased some stock. Not a lot, but its a start. Then they announce the other day very quietly that they have retained an investment banker. They announced this stuff so quietly that I missed it. Some guy on Yahoo caught it, and it is confirmed in the company's press releases. I'm in at 13. Is something happening? I'll nibble a little more around $14 tomorrow on this development. Sounds like the beginning of a catalyst in a stock that didn't have one before, though it certainly has my valuation criteria.

To: Archie Meeties who wrote (9689)	1/20/2000 10:23:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 78704

I must not have made my point clear on PETD. The majority of their revenue apparently comes from conducting drilling programs, not from sales of energy for their own account. Therefore, they do not materially benefit DIRECTLY from an increase in energy prices. They might materially benefit indirectly, if the price increase was perceived to be long lasting and resulted in increased interest in their drilling programs. However, if long-lasting higher prices were in store, why not own an energy company almost entirely exposed DIRECTLY to those benefits? As far as my comment of being interested in companies "with oil exposure" you answered with the typical polemical trick of responding as if I had said ENTIRELY oil exposure. In my opinion, some oil exposure is desirable and the duration of the benefit can be extended by selling futures contracts against future production. Even if "backwardization" reduces the benefits of hedging over time, the benefits are usually still positive.