Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: 249443 who wrote (14201)	3/31/2002 11:44:45 AM
From: MCsweet	Read Replies (1) \| Respond to of 78735

mrcjmoney First, thanks for your encouraging feedback. Second, fixated was too strong a word and doesn't apply to your specific post. What I really trying to do is make an observation about the numerous postings on Warren Buffet on this board. There is nothing wrong with postings about Warren Buffet, but I am more interested in stock ideas and insights that you and other posters have. I am not as interested in what Warren Buffet is buying next or what kind of company might he like. This is just my preference --- I'm not out to spark a debate or censor anyone. I just wanted to get that off of my chest. Ahhhh, I feel better now. MC

To: 249443 who wrote (14201)	4/3/2002 8:21:43 PM
From: TimbaBear	Read Replies (1) \| Respond to of 78735

mrcjmoney I just couldn't help myself today! I bought ACK (Armstrong Holdings) you know, the flooring company. Right up front, they have filed bankruptcy and it's about asbestos litigation. But I'll tell you, there comes a point when the money is just laying there...... I get Free Cash Flow of about $2.80/share (I bought the shares today for $3.32). I get a NetNet valuation of $35.00/share. Even in bankruptcy proceedings ACK has a Return on Capital Employed of 10% (If I use FCF instead of earnings it's 14%). This is a company that filed bankruptcy to stop the onslaught of asbestos litigations. They have a solid business model, and even assuming the carrying of a multi-billion dollar debt from asbestos, their cash flow would be solid for this price point investment. I backed away from some other companies due to asbestos, but I just had to take a shot on this one. I'll throw the shares in the IRA drawer and see how they look in 5 years or so. Timba