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

To: Paul Senior who wrote (12135)	3/5/2001 8:38:04 AM
From: Grommit	Respond to of 78471

DVI -- I'll pass. I get nervous over companies that I do not fully understand. And I get real nervous with companies that finance receivables because, well, they have huge receivables on the books. We can never be too sure of the quality and therefore the likelihood of future write downs. (I have been burned in the past with companies financing their own sales, let alone financing others' sales.) Also, insiders are selling, and there's not a large analyst following. Paul, I do not see a compelling reason to buy this one. You are right in that their cost of debt should be lowering. But I do not know how competitive this industry is, and how much of that cost drop will be pocketed and how much passes thru to customers. Thanks for posting & good luck.

To: Paul Senior who wrote (12135)	3/8/2001 10:06:24 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78471

Added today to my small but losing position in Boyd Gaming (BYD). Several gaming stocks have been issuing warnings, and BYD does have its problems. I believe the competition in the Las Vegas market (Boyd's major area) will only increase over time. Still, I see Boyd as an experienced operator. If they can get their fair share of the business, the stock eventually ought to recover from lows. Boyd's joint venture with MGM in a huge casino in Atlantic City is scheduled to open in 2003. I will bet (-g-, sorry) that the publicity surrounding that could help propel BYD to at least a 50% gain from current price. ($3.52 to $5.28) within maybe 18 -24 months. $5.28 is not an unreasonable number: the stock's sold over $5 at some point every year in its trading history; the stock's traded above its book value in several years (bv now is $5.37); and at some point, cash flows (arguably the chief aspect in evaluating gaming stocks) might be expected to improve as capital drain diminishes. jmo, and I've been wrong many, many times before.