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

To: Paul Senior who wrote (13216)	10/20/2001 6:22:37 PM
From: Allen Furlan	Read Replies (2) \| Respond to of 78742

Paul, what do you think of gmh as an arbitrage/value play? I have been holding since about 19 and thought 16/17 was downside. As a value option play I sold 10 Newport May 10 calls at 1.1 on Friday. Margin requirement is 1700 dollars and proceeds of 1100 dollars yields about a double (annualized basis) if options expire. If not I am quite happy to own newp at 8.9.

To: Paul Senior who wrote (13216)	10/20/2001 11:50:50 PM
From: rjm2	Read Replies (1) \| Respond to of 78742

I havent had that bad of luck with cash-searching for business stocks. A lot of trading opportunities really. ASCX has not really publicly given up on their core business yet so I guess liquidation is a possibility. LBPI is one from a few years ago that is sending me a check soon for $5.10 with another 75-85 cents coming later. I think I own it at $3 & less. CRTQ is NOT your typical biopharmaceutical r&d business. It has its UPSIDE with NONE of its downside. And they have like $3.70 per share in CASH searching for a business with value investor Paul Koether in control. They are mediating against Ono Phamacueticals because they believe they are owed royalties. Koether, the company & a bio-tech fund keep buying too. Its just a matter of time here. Realize however that the biotech patents ARE inhibiting the search for other businesses. CRTQ likely values them for more than any aquisition would. But the cash DOES serve as a "buffer" on the downside. Also realize that Koether is 64 and would probably not be content waiting for ten year payoff. I have read in numerous studies that small & microcap stocks do better in the long run than large & midcaps. I figure I lose any advantage I might have when smarter guys with bigger wallets are right along beside me. They cant effectively play in the small & microcap market. I theorize thats an advantage for me !? Why do feel the opposite ? I guess my overall strategy is combining things that work (based on longterm studies). Like low P/Es, price to book,Contrainism, price to sales, NCA cheapies,insider buying and my own feel for inherent "riskyness". I have had a suprising number of stocks hold up or actually increase in the last 2 years which kind of validates my approach. (In my mind anyway) Of course, I lagged the averages during the heat of the mania too.