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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (53551)	7/7/2002 10:35:03 PM
From: LLCF	Respond to of 65232

<the SOB knew what it took to make money > He THOUGHT he knew...keep the stocks up... he THOUGHT he could tell [Lie to] everyone there was no cashflow problem and the company was stupid cheap in the low 30's and he was going to buy stock to prove it and EVERYONE would believe it. But there were some guys out there who knew better, heard things and kept bashing the stock. Then the A-Hole comes out and says... "Oh, BTW, we need to sell assets... but things are still OK... so we DO have a bit of a cash crunch... don't worry. DAK

To: Voltaire who wrote (53551)	7/15/2002 10:51:02 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

Hey Voltaire did ya see this one? Was wondering why it was green today? Hot Stocks On Wall $treet Week With Fortune (This was originally published Sunday.) NEW YORK -(Dow Jones)- The following companies were mentioned on the July 12 airing of Wall $treet Week With Fortune: Rayonier Inc. , Tyco International (NYSE: TYC - News) Ltd. , Lucent Technologies Inc. ( LU) and Level 3 Communications Inc. When evaluating potential investments, Jean-Marie Eveillard, portfolio manager with First Eagle SoGen Funds, estimates the true economic value of a business. His focus is the firm's ability to generate cash flow, which Eveillard said doesn't necessarily coincide with earnings as calculated by generally accepted accounting principles. The manager has "never taken reported numbers at face value," he said. Conglomerate Tyco International , which traded as high as $60.09 over the past year, wasn't attractive at higher prices, Eveillard said. Shares finished Friday at $13.73, however, less than half Eveillard's $30 estimate of the firm's value, derived from the cash-generating ability of Tyco's various businesses. Former Chairman and Chief Executive Dennis Kozlowski, who resigned in June ahead of an indictment on tax-evasion charges, was overly optimistic about the firm's ability to grow, Eveillard said. Nonetheless, Tyco owns valuable businesses, the manager said. Eveillard owns bonds of Lucent and Level 3, both firms that are "in a race against time," he said, adding, however, that both are likely to remain in business. The manager owns debt, not equity, securities in the companies to mitigate risk. Tyco International Ltd. Howard Schilit, who runs the Center for Financial Research and Analysis, agrees that Tyco may be an attractive investment, saying the firm "could represent an incredibly exciting turn-around business with the right senior management." In the past, Tyco took large restructuring charges as it acquired businesses making it "very difficult for investors to know what was real and what was not," Schilit said. Investors picking stocks should really understand how firms they are considering make money. They should also tune their attention on cash-flow statements, not reported profits. If a company is growing net income at 20% a year but cash flow falls, "that should make you nervous," he said. Also, investors should read a company's proxy statement, which contains background information about management. He recommends investing with "people you trust."