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

To: James Clarke who wrote (10060)	2/25/2000 1:46:00 AM
From: jeffbas	Respond to of 78627

"The end comes when everybody who is left to buy has already bought." A little simplistic perhaps. In my opinion 3 things are fundamentally different than when I started investing about 35 years ago. Few individual investors allocate significant amounts of money to fixed income investments. Individual investors now manage their own retirement funds because of the decline in defined benefit plans (which by the way typically used to be invested in fixed income through insurance companies). Lastly I have never seen such a disinterest in value stocks (which somewhat resemble fixed income), even in the heyday of the "go-go" and "nifty-fifty" days of the late 60's. In my opinion, the end comes with a recession that damages the earnings of these tech companies. A homebuilder with declining earnings at 4 times earnings will then look a lot better that the latest tech stock at 200 times with declining earnings.

To: James Clarke who wrote (10060)	2/25/2000 5:53:00 AM
From: Madharry	Read Replies (1) \| Respond to of 78627

I have mentioned my some of my selections on this thread from time to time but only when I could see a value component to them. Otherwise it would seem utterly inappropriate for this thread. I recently mentioned Alliance Semiconductor. In the past I mentioned ORTL, MRVC, and unfortunately THQI, which becomes more of a value stock everyday it seems. I believe that what we are seeing now is the cannibalization of value portfolios by investors trying to improve their returns by shifting from value to technology, the perception being that as long as the fed raises interest rates all the interest sensitive business suffer- financials, home builders, retailers, consumer non durables, while the techs do not. I still see all the trends pointing away from these stocks, and as I said before there is not the dividend protection there once was- corporate executives love the concept of buy backs instead, so expect to see more of those as the price declines. I have a small position in CMH and a larger position in SNH both down significantly. I am watching those and also USU, to see if that one ever bottoms, but in the meantime the IPO market continues to rock and when you get 100% appreciation in one day or more it will continue to attract lots of attention. I personally am looking for GE to keep coming down, just can't see a finance company going for 40 times earnings. I also do not understand the concept of paying 2-3 times growth for any company.