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

To: Dale Baker who wrote (13162)	10/16/2001 5:20:14 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78512

I started a small position in your pick of MAXF this morning. I see your link where you've listed some of the positives today: Message 16511330 I look at it this way: The company offers a margin of safety: Cash assets apparently (Yahoo!) exceed stock price. Company is mostly profitable (3 of past 5 years). It's a steady-eddie in that sales over past six years have been between 150M and 200M per year- mostly around 150M-160M This outweighs the negatives I see: They are a broker/dealer(?) specializing in a niche market that may have growth potential (although I don't see it from the revenues generated) as people seek a haven from stock volatility or declines. MAXF revenues are a function of the number of brokers on the payroll, and MAXF, located in the WTC, was hurt. Also, to my way of looking at it, MAXF now is trading at the higher end of its price/sales and price/book history; and book value is growing only slowly. Return on that book value (ROE) is not great and is higher now than in previous years. It seems to me that the stock price is relatively high and already reflects most of MAXF prospects - unless MAXF can see substantial growth in its revenues. (And that is not apparent to me--however I have no expectise with the business or about MAXF.) I conclude though that with the margin of safety one apparently gets, and the steady business that seems to be there, I can hold this stock for a while to see if MAX prospects or performance or investor interest can move this stock up again to say, 4 (from 2.83 today), where the stock has traded occasionally when it's at its best times. Jmo, and I've been wrong many, many times. Paul Senior