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 (12295)	4/9/2001 11:32:18 PM
From: doug5y	Read Replies (2) \| Respond to of 78507

At least 2 of us are here, Paul. Picked up VCLK last Tuesday at $2.90, a Michael Burry pick on the MSN site. The stock price seems to be coming to life a bit lately. Re ALLC, you may want to review it's exposure to telcoms through it's loans. JJR1998 on the Yahoo! ALLC thread has documented it quite thoroughly. His view is rather more cautious of ALLC's near term future and the safety of the dividend. messages.yahoo.com IMHO, as per usual. Have yet to look at BL. Good investing.

To: Paul Senior who wrote (12295)	4/10/2001 1:02:13 AM
From: Brendan W	Read Replies (4) \| Respond to of 78507

Paul, my recent activity is ... Added to Kroger (KR) at 22... this is a Bill Nygren pick. PE of 15 on expected earnings growth of 15 percent. I added to positions I picked up last year at $14 and $20. The company has a lot of debt but it is investment grade. I like the competitive position of Safeway and Kroger against the rest of food distributors, especially their affinity cards. bought picks suggested in this thread: Valueclick (VCLK)... a net/net that I think has a sustainable business and Jakks Pacific (JAKK)... toy manufacturer selling below book value with rapidly growing revenues but some margin deterioration and a PE under 6. Bought Acxiom (ACXM) at $11. Previously it took a 50 percent haircut on an earnings warning. At that price the PE was around 11. The company "…is engaged in customer data integration in support of customer relationship management." Bought Mellon Financial (MEL) at $36. The forward PE was approaching 15. Added to Wendys (WEN) at $20. I started a position last year at $17. The PE was under 12 and expected earnings growth is about 10 percent. I still hold YUM and Diageo. Added to my Manpower (MAN) position at $28. (I still hold my $22 position that I acquired in 1999 at the same time I bought Robert Half at $12. I am watching RHI.) As you know the MAN is selling at a PE under 12. In the last day or so there have been earning warnings on the staffing companies. Added to International Flavors (IFF) at $21. This is a former Berkshire holding… the leading flavor/fragrance company, I think. I added to a losing position started in the $30s. Added to Etrade (ET) at $5.XX. The company was below book. I mentioned this one before. Bought Novell (NOVL) at $4. At that price and subsequent to the Cambridge Technology acquisition the EV is approximately $1.4 billion. The company has consistently generated $300 million in operating cash flow the last 3 years which I hope won't be hurt by the acquisition. The company has over $600 million in cash and short term investments with no debt. The company has an additional $400 million of (for me unidentified) "long-term investments". One fund manager estimates there is $300 million of real estate FMV which is not reflected on the company's pre-acquisition book value of $1.2 billion. Today I bought Medallion Financial (TAXI) at $9. Per Yahoo: "Medallion is a closed-end management investment company whose principal activity is the origination and servicing of commercial secured loans. TAXI also operates a taxicab rooftop advertising business." The company's book value is around $10.50. It's trading at a five year low. 90 percent of earnings are distributed as dividends and the yield is approximately 10 percent. Last year the company's debt was investment grade, but it has been downgraded to BB+ by Fitch. In the past the company has been able to issue commercial paper against its taxi medallion loan assets. The Yahoo thread is pretty good on it and the company recently released its 10K. A corporate officer appeared on CNBC today, hence today's price action. I sold Burlington Northern at $30. This was discussed here last year at $20. Also, I threw in the towel on USG common at $12 (along with Bill Nygren and Marty Whitman). My average cost was in the thirties. Most of this is quick and dirty analysis... please do your own due diligence and offer any corrections.

To: Paul Senior who wrote (12295)	4/10/2001 3:15:14 AM
From: Dale Baker	Read Replies (1) \| Respond to of 78507

Three offbeat buys yesterday, Paul: NEOG - food-infection test kit maker, just win a big lawsuit from a private competitor. A friend of mine has a private investment in the competitor and recommended NEOG. DRS - defense contractor in the same mold as EASI, etc. PNM - another solid utility that also sells to the wholesale market. I can expand on these more if you like.