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

To: cfimx who wrote (11610)	12/16/2000 4:35:19 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78519

Nice trade there on RL, twister. ------ I sometimes view fad retailers similar to entertainment companies or electronic game stocks. As if it's a random occurrence which company will have the major theatrical hit or top-selling game CD or hot fashion item. That it's better to buy the company with the cheapest stock in the sector, wait for its turn for a 'win' and sell as the stock moves up. Sometimes this works. (And sometimes it doesn't.) regarding fashion brands: I'm out of my AEOS position, and have moved into PERY (at higher levels). I'll likely add a bit more to my small position. PERY looks to me to be the cheapest of the fashion brand stocks. Now if they could only come up with some hot selling fashions. biz.yahoo.com I also still have Garan, which I consider a value stock. biz.yahoo.com Paul S.

To: cfimx who wrote (11610)	12/18/2000 1:20:39 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78519

Twister RL: I suspect RL has significant brand strength but the price is/was too high - currently EV/EBITDA is 15.9 vs ANF 6.8 despite higher growth expected for ANF: 22% vs 13% for RL. Maybe this was onetime hot IPO that came out too high [I haven't studied RL, so my impressions may be naive & superficial]. My contention with Brands is to buy them 'on sale' where you get a substantial portion of the brand value for gratis - even if estimates for growth prove to be 50% too high, 14% instead of concensus 22%, this could still kick out 18+% annual return based on conservative PE OF 14. At the same time, I recognize that I have no edge when it comes to recognizing and forecasting fashion trends so my positions won't be large.