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

To: James Clarke who wrote (2423)	4/9/2000 2:29:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 4691

One last thing on Ralston I forgot. Go back to the last annual report and look at the segment reporting. Do a quick calculation of return on assets of the pet food business. You don't need a calculator. To the nearest 10% is enough to get the picture. Then look at the size of their non-U.S. business. You think Ralston might have some reinvestment opportunities at high returns over the next ten years? What I have not provided in this analysis, which I usually do, is a detailed valuation. I would be interested in how Mike Burry and others come back to me on that issue. If you agree this is a Buffett stock - maybe you don't - what would you pay? You don't have the numbers you usually would have given the spinoff, but I believe that spinoff is to my advantage in the short term because sellers may be selling for dumb reasons (for instance - this isn't a "large cap" stock anymore, so some portfolio managers may be dumping it for that reason alone). OK, I'm done. I'm very interested in others' views on RAL.