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

To: Paul Senior who wrote (13721)	1/17/2002 6:57:28 PM
From: Dale Baker	Respond to of 78476

Since we are all catching up here: Bought FRT today, a Washington area REIT that does interesting "main street" developments along with the usual big box shopping centers. APFC - an offbeat play in defense, they make elements for rocket fuel and other chemicals for fire extinguishers and airbag systems. GTIV - healthcare play selling under book value with no debt. ADS - solid play in transaction data processing. FF - First Financial Fund ETF, outlined in Washington Post recently. Still like NFI and added on the dip today (caused by one large block seller who crashed the price), also love WM, adding shares to my calls. Picked up SAFM from Paul's earlier value play list.

To: Paul Senior who wrote (13721)	1/17/2002 6:59:00 PM
From: - with a K	Respond to of 78476

I used to own BTH, too, but sold it for the same reasons, Paul. I thought I had found a real value stock at the time (mid 1999) and did a curious thing at my investment club. I presented the whole case for the stock before I revealed the name or the products or even the industry. Just the fundamentals, the history of growth, the expansion plans at the time, etc. I was afraid of what the reaction would be to presenting a "candle company" to a bunch of tech-hungrey bulls at the time! Well, they were all salivating until I told him what they did. We passed and I later sold my personal position for a 35 cent gain per share. :>) - Kris

To: Paul Senior who wrote (13721)	1/17/2002 8:00:42 PM
From: Brendan W	Read Replies (1) \| Respond to of 78476

re: FRT, BTH I bought Federal Realty Trust ("FRT") and upon finding the CEO's compensation (per Yahoo) to be $2.6m in 2000 promptly sold it. I read the "Value Investing: From Graham to Buffett" last week. In it he profiles a value investor whose name escapes me (his company is "Chieftain"). This guy focuses on very few names (like 7). Two of the seven per the last SEC report were Blyth and Yankee Candle. I still have a small position in BTH and will likely increase it when the price gets back to $20. The book mentioned above also touts Joel Greenblatt's, "You Can Be a Stock Market Genius". Without that credit, I can't imagine reading a book with that title, but I am reading it. I find it also interesting. Specifically: o the insight provided by American Express spinning Lehman Brothers. As an investment bank, Lehman Brothers has very uneven earnings. AXP traded higher the day of the spinoff (i.e., DESPITE the spinoff) because the street so penalized AXP for the unpredicability of Lehman's value/earnings contribution prior to the spin. I feel ignorant but I did not know that level of inefficiency existed. o John Malone designed a complex spin of Liberty from TCI to discourage fellow investors in TCI from opting for the spinoff so that he could maximize his ownership of the spinoff. The insight for me is that insiders might design an apparently ugly offering for their own benefit because they know the ugliness is superficial.

To: Paul Senior who wrote (13721)	1/18/2002 12:31:12 PM
From: Grommit	Read Replies (1) \| Respond to of 78476

Paul, I looked at BTH a million times. It always cam up on my screenings but I never got on board because it seemed like the product did not thrill me. It isn't exactly a necessity, no barriers to entry, blah blah... I just bought GLYT. quote.yahoo.com EPS has risen year by year, but like most others, stalled in 2001. 2002 depends on the economy. Great cash flow and the auditor is Arthur Anderson, so we know the financials are relaible. Very good home page genlyte.com yahoo.marketguide.com Vice President and Chief Financial Officer Bill Ferko stated, "We delivered very strong cash flow during the quarter, generating $41.0 million compared to $14.9 million during the third quarter last year. We repeated the exceptionally strong cash flow trend from last year by generating year to date cash flow from operating activities net of capital expenditures of $42.0 million, compared to $25.8 million for the first nine months last year. We did a good job managing working capital and especially accounts receivable during the third quarter. Our accounts receivable declined to 15.3% of sales compared to 16.1% for the third quarter last year. As part of our continuing stock repurchase program we purchased a total of 14 thousand shares of stock at an average price of $25.00 during the third quarter."