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

To: Paul Senior who wrote (9713)	1/23/2000 10:23:00 PM
From: debrahaugen	Respond to of 78745

I appreciate the info on VII and its value status in comparison to SILW. It so happens that I own a very small position in VII (purchased late last year at 5 3/8), along with several other small caps. These were specifically purchased to play a hoped for "year-end rally in depressed small caps." However, these securities were purchased only for a trade of several months (although human nature being what it is, and depending on circumstances, I might re-evaluate my position and even double up, sell as planned, or maintain a status quo long term investment posture). Yes VII is perhaps "cheap," but when you compare the heavy debt load, poor and hopefully improving financial ratios of VII, with the pristine financial statements and ratios of SILW, I can only answer that I am very comfortable paying somewhat more for a great management with the financial flexibility of no debt, high margins and high ROE. Let alone (in my opinion, a far superior product line). Cameras that can withstand temperatures of -50C (Arctic Hawk), visibility of 40 feet in complete darkness (Night Hawk) and, perhaps my favorite , the cameras that are armour plated and bullet resistant. But as you said, there is still the risk of being small and competing with giants. Can't argue here except to say that is one of the reasons why top management is so important in my investment equation. For what it is worth, took a small position in CMH at 8 7/16 and 8 5/16 this past week (thank you James Clarke). Also in DHI at 11 1/2 because I think the company is cheap and I expected John Neff to speak positively about the company in this week's Barrons. Read Neff's recent book as to further detail as to why he really liked DHI, although I am probably a little early on DHI, I will definitely average down should DHI decline another point and one-quarter or so. Airlines also appear cheap, but am only looking still, especially at ALK and DAL... any specific insight as to how to best time this industry would be much appreciated. I am not comfortably holding this industry long term, but short term... perhaps when oil prices begin to decline, and fuel hedges are properly evaluated, a trade?