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

To: Paul Senior who wrote (11255)	10/10/2000 7:56:03 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78618

I'm starting positions in EGLS and ADIC. EGLS has a pe of 10, sells at 2x cash, and has 0 ltd. Marty Whitman (per Yahoo) is a large shareholder. This stock, now about 15, has in most recent years (not '98) sold at some point for $20 or more. I will bet that it sells again for more than $20. ADIC sells roughly at 2.4x book, 3x cash and has 0 ltd. Psr is still high at 2.7. Although all 5 analysts in Yahoo site have a moderate or better buy on the stock, the expected pe next year will be 20. That's absolutely high (imo), but relative to past years, it's not too bad. There's some insider buying recently at about current price level. Fortune mag. has it as one of its 100 fastest growing companies. (That could be the kiss of death -g-) biz.yahoo.com Imo, value investors face a difficult time now with tech stocks. There appear to be many choices from which to select. Also, I sense that all these stocks are continuing to drop each day. This leads to the logical refrain of why buy now, even if the stock is a value? It'll be cheaper tomorrow. My general philosophy is to buy when I see value. Some of these value stocks could get chopped 50% from current prices. OTOH, we might still see a favorable October for tech. My strategy is to buy small amounts and prepare to lag in (if the stock drops). So at least I've got something going if the market turns favorable. Secondly, I will try to be diversified by buying a number of these tech stocks. Since I'm assuming I might have to hold these stocks 18-24 months or longer, my preference is to go with companies that have little debt and lots of cash, which to my mind, provides me (and the companies) with a margin of safety until better times arrive. jmo, I've been wrong many, many times Paul S.

To: Paul Senior who wrote (11255)	10/10/2000 8:51:59 PM
From: Grommit	Read Replies (1) \| Respond to of 78618

Paul, Thanks for the info. I also agree about techs and think that it may be a reasonable time to add. I am already a (relatively recent) owner of NSM, KLIC, KEM, CTS, SCI and others, and I think AMAT is the next on my hit list. Maybe. It's one of those market leader that everyone has to own when the semi outlook is less cloudy, and the PE is pushed up to 48. Everyone prides themselves in owning AMAT. It may be a bit pricey now, so I'm just lookin'. quote.yahoo.com^SOXX+intc+txn+tsm+amat+brcm+stm+adi+umc+kyo+mu+altr+vtss+lsi+amd+atml+nsm+cy+cree&d=0b stocksheet.com