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

To: James Clarke who wrote (2201)	2/24/2000 5:16:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 4691

Re: Mattel, they got an S&P debt downgrade today biz.yahoo.com When we debated Mattel a while ago, my argument centered on calculating ROIC and including acquisition goodwill in the capital base. My argument was that management had used capital, and just because they used it to buy another company doesn't mean it should disappear from the record books of capital provided. A company might be a good internal business while being a poor investment due to poor investment decisions by management. Somehow I was prevailed upon (not quite sure how), and ultimate I bought in at 13. Well, today I sold at 10. This may be the absolute nadir for Mattel stock as an investment. But my feeling was that there are other perfectly good companies being punished unfairly, while Mattel is probably at this point being punished fairly - and didn't deserve the run-up to its highs that it got in the first place. Good investing, Mike