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

To: Bob Rudd who wrote (12262)	4/5/2001 10:35:02 AM
From: Andrew	Read Replies (1) \| Respond to of 78748

CRG/RDGE- few responses 1) The lack of coverage presents value gap opportunity. Do you want to own something before or after analysts discover any investment? I don't contend analysts will come running to this investment but only that the factors that have turned off both you and others are being remedied and one can buy investment before or after such event. Before the value-unlocking event is always more costly. 2) If the value were more clear to the 'casual reader' then the 'value gap' would not be as deep. Look there are companies with visible catalysts and there are companies with less visible catalysts. The more visible they are, the more the value will already be in the price. So you want analysts and clear value for anyone casually to see and then have it not already reflected in the price? Nothing is free here. How resourceful and less casual you are will determine how much profits you may earn. The rest is just plain luck. For that you can go to vegas and put your money on black and at least get a free drink and a show! 3) The small cap nature of these individual companies ensures a large index population. However, reviewing the holder list on bloomberg, I would consider the institutional ownership of the components pretty impressive value players.- First Pacific Advisors (Bob Rodriguez) Pacific Asset Mngmt; Artisan partners; Lawndale Capital Management; Wachovia (Special Value); pine asset (hoefer & arnett) Private Management Group and First Manhattan While Beauty may be in eye of beholder, riches will be in pockets of the more diligent. The merger transaction is intended to mitigate your issues. You can wait for the transaction to be completed this summer and then wait for a few 10-Q's or even the 10-k. My belief is that the stock price of the combined entities in CDL will be lower or higher than today's $2/share price? (combined tangible book will be around $6/share or more); IMO- RDGE and CRG's are cheaper way to own the CDL stub.