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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Michael July who wrote (89188)	2/4/2001 11:34:50 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

MJ, Cos. like Vaso have the opportunity to perform well in a down market because their growth is not related to the economy. In fact, I suspect there will be more angina if the economy tanks. Of course, there will also be more folks who do not have health insurance. However, a co. where the best years are still way off in the future is more likely to go down more than the market if it crashes. The small value stocks are a very real possibility as a buying area. This is one area where I think you have to diversify your picks. Any one value stock can stay down and out forever. A whole list of them has a greater likelihood of some stocks moving up smartly. I like the way Royce picks them for his funds. RVT, OTCM, and RGL all hold stocks that are selling at valuations that don't seem to reflect their replacement cost. Also, each fund is selling at a pretty hefty discount to those net assets. The only negative is that Royce regularly has rights offerings. His rights offerings are praised for being the lowest cost in the industry, but I would much rather have them not exist at all. For example, we rarely praise a pickpocket who lifts our wallets and returns it after taking $5 for a meal. Relative to other pickpockets, he is a pretty nice guy. But I still don't care for the practice. <g>