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Technology Stocks : EDS - Recent pullback a buy opportunity??? -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (1807)	11/25/2002 7:46:09 AM
From: Larry S.	Respond to of 1841

I will try and accumulate a list and post it here. I check different mutual funds periodically, and their holdings. I have seen TYC appear in a number of new funds, and also EDS. larry

To: Ditchdigger who wrote (1807)	12/7/2002 7:51:12 AM
From: Larry S.	Respond to of 1841

Value Managers and EDS - a while ago you asked me who some of these value managers were who were accumulating EDS, here is a piece from today's barrons: How is Clipper Fund managing to keep its returns up with some huge dogs in the portfolio? Said dogs being Tyco, Electronic Data Systems and El Paso Energy. Turns out Clipper was 30%- 35% in cash for the first half of the year, and for the first time since 1995 it is now fully invested. The $5 billion fund is down 4% year to date, compared with the Russell 1000 Value index, down just over 16%. "We started buying Tyco in the mid-20s and were buying it all the way down in the single digits," says Bruce Veaco, Clipper fund co-manager, run by Pacific Financial Research. "As Tyco's share price was recovering, in order to keep the position to a reasonable size, we scaled back as it was coming back up." As of June 30, Pacific Financial Research held nearly 4% of Tyco. Clipper buys at a 30% discount to intrinsic value and contends "issues surrounding Tyco won't be resolved right away. We assume over three to five years they will be, and we can sell and realize not only elimination of that discount," but also the underlying value, Veaco says. For Tyco, Clipper estimates intrinsic value in the 30s. "When it reaches that level, we'd be sellers." On El Paso, "We clearly bought too early. We averaged down. But there is significant asset value. The disarray in the energy business caused a number of companies to drop dramatically" and he sees intrinsic value at $20 a share." Why El Paso? "We were uncomfortable with Dynegy, getting our arms around their off-balance-sheet transactions, and saw too broad a range of possible values." With El Paso, even with onerous assumptions on their trading business and pipelines, plus ultimate liabilities from an adverse regulatory ruling, he contends "it was still significantly undervalued." What has Clipper been unloading as it bought? Earlier in 2002, it sold Office Depot, United Technologies and Target.