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

To: Madharry who wrote (9765)	1/27/2000 7:43:00 PM
From: Archie Meeties	Respond to of 78748

Any thoughts about allocations at this time? how much short term money, long term money. stocks? "Leonard Kaplan, chief Bullion dealer at LFG Bullion Services noted that the move on silver today was made on fresh buying as opposed to short covering. He said Warren Buffett...also has to roll over any silver he may have leant out in February. Buffett bought 129.7 million ounces of silver a couple of years ago and admitted to having leant out a small portion of the material some time ago although he has not recently commented on the silver positions at all. However, Kaplan noted that Thursday's rally was not accompanied by a rise in silver lease rates, which are under 1% for 1-month. "If lease rates would move up I would jump on this from the long side," said Kaplan. Mar now sees resistance at the $5.45-5.50 level. "

To: Madharry who wrote (9765)	1/28/2000 5:16:00 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 78748

Armin, re asset allocations. I am putting some money into convertible bonds with superior yields to maturity. Last purchase was Alterra Health (ali.a) at 61 with 5.25 coupon and maturing Dec 2002. Yield to maturity is over 25% if company does not go belly up. The debt to equity is about 4/1 making this very risky. However I believe the company will stay solvent and that the return is worth the risk. Convertible bonds quite often reach very high levels relative to face value because of the convertibility factor and the arbitrage players buy the bonds and sell the stock. When the stock collapses, a la ali and may reits and health care companies, the bonds get dumped so that the short stock positions can be closed. This is one reason that convertibles can trade lower prices than comparable junk bonds. If others on the thread are familiar with other reasons for "cheap" convertibles I would be interested in learning more. In any case there are many opportunities to earn a good return while waiting for this market to shake out. Another way to hedge your bets is to play the arbitrage games. I wish that some of the other excellent posters on this thread would visit Mikes arbitrage thread. We could use some more expert opinions. Right now I think ctz might offer the best opportunity. P.S. Madgf is now my biggest holding but unfortunately I have been selling leaps along the way(5,10 and 15 strike) I am nervous now that madge may collapse if the momentum bubble finally breaks.