Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (12030)	2/16/2001 12:20:20 AM
From: Brendan W	Read Replies (3) \| Respond to of 78602

Re: Sealed Air Paul, like a previous poster I have bought next to nothing over the last month. I can't get excited about anything. I may feel obligated if we get some more rate cuts. Since my last post, I kept adding to the Sealed Air bringing my cost down to $32. I cut my exposure to insurers SAFC at $31 (my cost $20) and MONY at $47 (I had the $23 IPO) and to the homebuilders Ryland at $41 (my cost $16) and Pulte at $43 (my cost $16). These gains were all taxable. I took some tax losses in JCP, PBY and IFF, but I'm still long. I sold two-thirds of my $4.50 SKO at around $7 (non-taxable account). I sold my $38 BAC at $48 when I heard their bad loans might be from the California utilities... not just from economic cyclicality (again a non-taxable gain). I've added mostly energy companies... two refiners on a P/E basis in the 8 to 10 range... Tosco at $33 (currently $42) and Ultramar Diamond Shamrock at $30 (currently $35)... I added Conoco on a PE basis as well at $26 (currently $28)... and TXU Corp on a PE basis at $36. I stepped up my investments in the asbestos plays when Buffett sprinkled his holy water in the area [credit another poster for this characterization] last fall adding to USG, OI and CCK. I have turned the OI into the black after initially buying in the mid 20s, but I'm still down substantially on the other 2 (like 30 to 40 percent). I'll add more USG if I can get Buffett's price (mid teens). I made I think an interesting investment in E-Trade Group at $7 (currently $13). The company was approaching book value, is doubling its accounts annually, had a large short position, and is clearly one of the top 3 discount brokers. The company is second only to Schwab in international presence. Its market cap was around $2 billion... I don't think it has much debt... and I figured surely some foreign bank would want it at some point for at least $4 billion. I had previously bought OfficeMax at $8 on a price-to-sales basis. After the Barrons article I brought my cost down to $2.50 (currently $3.75). The sales per share is around $45 with no debt. The book is around $9. The CEO says he won't sell for less than $20. I turned around my $20 Champion Enterprises position by loading up at $3 (currently $6). Book is around $9; sales per share around $40. I began a position in Cemex (CX) at $19 (currently $21). I think the company has a great track record. It has a fair amount of debt but the PE is under 6. It is the number 2 cement manufacturer worldwide, second to Holderbank. It has at least doubled EBITDA over the last five years. I bought Harte Hanks at $22. I don't like their "penny shopper" publication business because I don't understand it. Their direct & interactive marketing business is well thought of, though. Their earnings of around $1.30 is almost all free-cash-flow. Check my facts, please, before using them. I do this from recall which in my case is not very good.