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

To: sjemmeri who wrote (12094)	2/22/2001 1:09:52 PM
From: Paul Senior	Respond to of 78625

Okay, maybe I would be better off if I reduced my exposure to the home building sector at this point. (Thanks for the posts to get me to consider it.) I started to cut back my relatively large position in SPF, as well as a little of my four-year holding in RYL this am. Also, I've started to reduce my small position in Whirlpool. And in other actions, I've taken some software designer SNPS off the table too after today's 5 point move. I added to my losing position in SWS today @ $20.34. My opinion is that these type financial stocks are buyable for value investors when they trade at book value. Book value is $19.20. I'll call today's price close enough for me to add. I originally bought at higher levels because of other aspects - SWS seeking a buyer, SWS holdings of NITE, trading pattern of SWS (That was an oops!) I also added a small amount to my small amount of RDN. Here my ruling reason for buying is that AIG has a good size position in the stock. From my experience with other financial stocks in which AIG is a holder, AIG seems to be willing to add to their position if/when the stock drops, and sometimes they add as the stock rises. Such activity is both good and bad: the bad is that AIG can and has become the controlling stockholder. (They could lowball a takeover bid.) But for now for RDN, if AIG's past pattern were to continue (and there's nothing that says it will), their activity tends to put a floor on the stock (if they sop up shares), and their doing this would confirm, at least to me, the stock's value. Paul S.