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

To: Dale Baker who wrote (14933)	7/25/2002 1:29:02 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78615

Generally, I'd say volatility isn't equivalent to risk. But in TYC's case: There's a large chop in the price today. Lots of people want out (92M sh. changing hands as I look). In past, TYC either hasn't been honest or forthright with investors. They deny rumors of hiring a bankruptcy attorney firm. Given how I might interpret that in business-speak, maybe they did but are calling the people "workout specialists" or "debtor-in-possession" people or some obfuscating term. Maybe TYC really is planning for bankruptcy. Level of trust with TYC is very low. There was also an article out yesterday on how TYC's $2B dollar investment in undersea cable is only generating under $50M in revenue. (I don't remember exact amounts.) A disastrous, ill-timed, venture though. I inferred from the article that those cap. costs and expenses coupled with little revenue had not been factored into TYC's problems because investors were not aware of the situation. It would seem that the wise decision is to avoid TYC and and others like it. For me though, I'm adding to my position.

To: Dale Baker who wrote (14933)	7/26/2002 11:13:57 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78615

I am trying to "upgrade" my portfolio by buying beat-down large cap stocks that seem (by their size and scope, resources) to offer some safety regarding the business risk (i.e. better able to cope with the business cycle... I hope). And maybe more able to garner more interest from institutions than small cap stuff. I am having a hard time doing this: The small cap junk beckons me. Today I added to small but losing positions in FLE and TSO. The selling seems overdone here. Bwdik. Anyway, I'll bet these stocks will recover. They have in previous downturns, but it took some time. I did add a little to my position in large-cap (17.7B) HI today. This one shows earnings growth, dividend growth, and low (imo) p/e. Paul Senior And as discussed, I still am not understanding MAXF business or why the stock is trading at its current low (imo) price. Nevertheless, I added more today to my position. Very strong balance sheet is the clinching factor. (for me) Paul Senior finance.yahoo.com