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

To: Paul Senior who wrote (12613)	6/7/2001 6:38:32 PM
From: Crossy	Respond to of 78717

Paul, thx for your reply.. That concern is still there but the size of any problematic exposure was greatly reduced. The way PARL generated cash flow big time to overcome its critical moment 3 years ago also. The repeat sales don't bother me because they are a manufacturer and distributor not a retailer (!) and it's their job. If the web is moving things it'S equally fine for them. BTW this is a reason why gross margins are very high here (60%) because they are not the retailers in this sector.. DFA - they have smallcap arm and yes they are "sector" investors. BUT - and this is important - they usually go for valuations big time, especially PSR (price/sales) vs. indsutry mean and PE or "normalized PE" if applicable.. The might be strange but I prefer this approach to the many bellwether seekers plowing another $10m into CSCO at $50.. best wishes CROSSY

To: Paul Senior who wrote (12613)	6/26/2001 1:56:02 AM
From: Brendan W	Read Replies (4) \| Respond to of 78717

re: Dimensional Fund Advisors. Paul, you wrote: >>>> "...worth noting should be that DFA (Dimensional Fund Advisors) almost doubled their holding in both: ALU and PARL. " I'd say not worth noting. DFA is a strange fund imo. I'm one for lots of diversification, but these guys are ridiculous. They own pages of stuff. I'll defer to you or anybody else here who's got better knowledge, but it seems to me these folks are indexers of some kind. They're not buying on fundamentals but rather on some sector style. <<<< I run into them a lot, too. I was curious so I researched them. They are academic-based, indexers, efficient-market proponents based in Chicago. Hence, the weirdness. I think they have no mutual funds, but they must run a lot of institutional money. Their small cap value fund buys based on price to adjusted book. Their website is: www.dfafunds.com Interestingly, they claim to have a trading strategy whereby their purchases (which are large) don't affect market prices.