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

To: Paul Senior who wrote (13515)	12/31/2001 5:43:19 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78542

I used sales proceeds to establish new positions in GEHL and CBE today. I categorize Gehl Co. as a small-cap cyclical company that's in the lousy end of its cycle. I am hoping that construction/agricultural equipment - Gehl's products - will once again have good customer demand. If/when that happens, I'd expect the company once again to sell at book value or higher. Book value has been steadily rising, and now it's close to $20/sh; the stock's at $14.90 today. I'm buying because of insider transactions. If I understand/interpret the story correctly (and I'm not saying I do), a large investor (CIC Equity Partners), frustrated in its inability to force Mr. Gehl and management to take action to increase shareholder value, sold its stake to another investor, Neuson AG, for $20/sh. Neuson apparently at least once before made an offer to acquire GEHL, but was rebuffed. Neuson now has about 13% of GEHL. I will believe they are buying GEHL stock because they either expect to participate in a cyclical recovery of the business or else they perhaps again will make a run at GEHL itself. CBE. I might as well just start out and say CBE has an asbestos exposure somewhere. It's presumably small and manageable. Jim Clarke has said, if I recall, that there is NO small risk -- just forget about such stocks. Run. -g-I'll try a small position anyway, keep my eye attuned for company news, and if it's bad, hope there's room for me to escape with the bulk of my dollars intact. CBE (Cooper Industries) is suffering this year, but will still earn $2.75/sh, analysts say.(Compared with more than $3 in a good year). P/e about 12-13, div. yield about 4%, p/b =1.7 (often 2.2 in better years). Stock repurchase plan in place. Danaher (DHR) recently has shown some interest in acquiring CBE, but has not made a formal bid, as far as I know. finance.yahoo.com Happy New Year, guys!