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

To: chuckr18 who wrote (12322)	4/12/2001 7:22:04 PM
From: TimbaBear	Respond to of 78669

ChuckR.... I know you addressed your inquiry to Michael, but he's not around very much anymore. As far as my record with NetNets and Cash flow stocks....well, my NetNet picks are too recently purchased to have a long term perspective. In the short term, their performance leaves something to be desired. I believe they are underperforming when compared to the market. However, one of the reasons I use this method, is that there is a "margin of safety" involved. If these companies are liquidated, there would be money left for the shareholders to get paid at least what I bought my shares for. Additionally, I bought the stocks with a 5 year view. If the stock price of these companies just gets up to NetNet value within the next 5 years, I'll have a nice return on the investment. The ones I purchased using a low multiple of price to free cash flow approach combined with a low multiple to NetNet valuation are doing much better in the short term. However, that may be due more to this market turn-around than to the picks themselves. I'm in a position to "watch the tape" and the ones I picked recently that appeared to jump off the tape at me are doing the best, but these are momentum trades and not value plays. Timba