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

To: Paul Senior who wrote (12566)	5/30/2001 10:31:56 PM
From: sjemmeri	Respond to of 78702

Doc Burry dumping his VCLK today. I doubled down on it recently, took a trading profit on half, and will continue to hold half. I also got back into AAPL today.

To: Paul Senior who wrote (12566)	5/30/2001 10:36:27 PM
From: rjm2	Respond to of 78702

Subprime lending has not done well with Wall street. And public companies in the subprime car business have proven to be big losers for many investors. See UGLY now and years ago a company called Urcarco which failed miserably, prior to that management kicked & screamed that their reserves were sufficient while the shorts were laughing & selling all they could, there was some insider buying by one of the directors for a pretty large amount too. I have not looked at this company specifically, but I know that Urcarco & later many subprime lenders underreserved bigtime which has the effect of showing nice earnings now and then later the problems come home to roost with a vengence as the $3500 wholesale piece, which they sold for $7995 with $1000 down is later repoed and torn to hell and they end up selling it for $500-1000. All that being said, subprime auto lending works all over the country for family owned dealers. But usually its done on a smaller scale with less out of pocket risk. (ie; a $1000 wholesale piece is sold for $800 down) As for CNGR, the good news is they are buying back stock. The bad news is so did Urcarco, UGLY & a lot of the subprime lenders of years past. My guess is without direct knowledge of their lending & operations practices, It is difficult to guess if their reserves are sufficient. So...I would wait for significant insider buying to show the way. Even then, its no guarantee.