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

To: Allen Furlan who wrote (10475)	4/30/2000 1:19:00 PM
From: jeffbas	Respond to of 78958

Allen, I bought ALU on the IPO, have not owned it in a long while, but am still on the mailing list. The stock never has carried any kind of valuation, probably for the reason you mention, except for a brief Internet spike period, which is not relevant to its current business. Nobody much likes distribution companies, so if I am going to buy a small one there I would rather stick with something with strong industry growth trends, like SEMI which I mentioned here at lower prices.

To: Allen Furlan who wrote (10475)	4/30/2000 4:43:00 PM
From: Paul Senior	Respond to of 78958

Allen, re. ALU. Yes, that would be another distributor that fits my model, and I would consider buying. But not now, as it's just been recommended in Business Week - and possibly why the stock's popped up. It's also been recommended a couple of times in the past year by newsletter writers in Dick Davis Digest. Al Frank, for one. Although ALU might be a net-net, its main business - distributing - is unexciting to most (me included) - and its main product - beauty/fragrance stuff - is very competitive and fickle. In other words - a scary stock. Furthermore - in my most humble opinion - a positive Business Week recommendation often indicates a top for the stock. And CERTAINLY and WHENEVER, the word "poised" is used (which BW did) as in "poised for growth" - that is THE KISS OF DEATH, and indicates a stock that should NEVER be bought on the arguments used by the author. "Poised for growth" is code for "run from it like the devil's chasing you"! Neverthess, in spite of BW's writeup, I believe ALU, maybe ARG, will be another one of the stocks of distributor companies that get posted here occasionally, that get dismissed by almost all readers, but that in time, turn out profitably for those who would have bought. Paul Senior who has been wrong many, many times. But not so much on distributor stocks. -g-.