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

To: peter michaelson who wrote (11106)	9/2/2000 9:13:03 PM
From: Condor	Respond to of 78733

OT As we all know, investing in a hot stock with a hot story can be dangerous to ones financial health and for the most part results are predictable. It kind of reminds me of my cousin who when stopped by a policeman and told " Smells like beer in your car," replied " Smells like doughnuts out there." In this case too, the results were quite predictable.

To: peter michaelson who wrote (11106)	9/2/2000 9:17:54 PM
From: peter michaelson	Respond to of 78733

Found this commentary on Yahoo Board. In the golf apparel industry it is not uncommon to have 6 months inventory on hand. There are basically two seasons for the product, spring and fall (some others, mostly high end do a holiday line). Most of the product is produced for the merchandiser overseas (typically pacific rim and india) to his specs and they purchase what they think they need for the season. The product gets delivered by boat for the lowest prices. You don't want to get to midseason and have to order 5000 pieces to fill an order, first of all it takes two months to get here and it's too late or you fly it in and it costs you an extra $2.00 per. messages.yahoo.com And here is another find- DENVER, April 5 /PRNewswire/ -- Sport-Haley, Inc. (Nasdaq: SPOR; PCX: SHY), announced today that it is agreed to extend the due diligence period with a potential acquirer through April 16, 1999. The extension was requested by the potential acquirer in order to allow completion of due diligence and documentation. Pricing terms have not yet been agreed upon between Sport-Haley and the potential acquirer. A further announcement will be made at such time as pricing and other terms are agreed upon. there was quite a bit of yahooligan dissatisfaction over the failure to name a potential buyer. Accusations of insider manipulation.

To: peter michaelson who wrote (11106)	9/3/2000 12:21:16 AM
From: James Clarke	Read Replies (2) \| Respond to of 78733

Give credit where its due. Our newcomer rjm2 brought SPOR to our attention. If this is the guy I think it is, I see him regularly on Yahoo and he is a very savvy and bold buyer of net-nets. Hope to see more from him. On SPOR, inventory is the story, though there is a whole bunch of cash in that net current asset number as well. The company makes custom-embroidered golf shirts. They got stuck with a whole season of inventory. What are year old custom-embroidered golf shirts worth? Well, we're getting some idea because they're liquidating them and getting good money. The company had the sense to shut down production of new ones - i.e. when you find yourself in a hole, stop digging. I don't know this for a fact, but common sense would tell me that management isn't stupid. The inventory isn't custom embroidered. I'd think they'd do that when they get the order, so I think the inventory is "blanks". Do golf shirt styles change that much season to season? I don't think so. Another issue here is you've got a family in control, with the son succeeding the father. When I saw where the son worked before it nearly made me barf - he was the marketing director for a company that was probably the worst investment I ever made, about three years ago. The size of the share buyback, and the impact of a share buyback at a valuation like this, is what made me pull the trigger. I will be buying another net-net aggressively on Tuesday and will post it after I get my position.