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To: Tim McCormick who wrote (18170)3/16/2000 2:08:00 PM
From: pater tenebrarum  Respond to of 42523
 
Tim, they're cheap in a relative way...relative to their former highs, relative to the overall market. they also pay big dividends. in most cases the book value is higher than the current stock price. of course these considerations could become meaningless if there's a recession, but right now, the value stocks discount an awful lot of bad news. i expect several of the insurance cos to be bought out btw.
in any event, i'd rather own these stocks at their current levels than e.g. SCMR or AKAM and similar no revenues/mountains of losses/market caps in the billions companies.
until proven otherwise i'm anyway assuming that the value stocks are merely engaging in a bear market rally. that's no reason not to participate however. if i were dogmatic about the market i'd never make a dime.