Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: geoffrey Wren who wrote (10383)	4/19/2000 5:16:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78505

I say CNF and YELL are fairly valued within an out-of-favor sector. The positive reasons for investing in the larger companies do have some appeal though. I've got positions in several smaller trucking companies, and their prices are below, or hovering at, my purchase prices. Nevertheless, -g-, I've started a small position in BOYD today - a very small niche player within the trucking industry. stocksheet.com Although the company has been increasing its LTD, it looks like a reasonable bet to me that there might be a stock price revision-to-mean given some of its financial ratios - p/e and/or p/sales and/or p/book. Revenues have doubled since '95, so it could happen. Which would result in at least a 50% move from current 5 1/4 price. The stock's traded near 9, or higher than 9 every year since 1994 (since publicly traded, I believe) JMO, and it seems like I've been wrong on every trucking stock I've looked at. Paul S.

To: geoffrey Wren who wrote (10383)	4/20/2000 1:52:00 AM
From: Michael Burry	Read Replies (2) \| Respond to of 78505

This is the top of the cycle for CNF and its ilk. Same goes for Maytag. So do you buy cyclicals at 9 times peak earnings? Or do you wait for 4000 times trough earnings or N/A. Rather, how about Clayton Homes, which trades at 9X earnings and just announced in its conference call this past week that these might be trough earnings? I know CNF well, and of course the idea of investing in it or Maytag + Hoover just sounds right to a value investor in a tech-manic world. But it may not be profitable, IMO. Or at least not as profitable as investing in them at another time in the cycle. Good investing, Mike