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

To: Dale Baker who wrote (16368)	2/6/2003 9:54:38 AM
From: Wallace Rivers	Respond to of 78667

Anyone have any knowledge or interest in Scientific Atlanta (SFA)? It is getting a little pop today from an upgrade. It has a good looking balance sheet (CR 5-1, BV about $9.30/sh., virtually no debt, $4.75/sh. cash and short term investments). Supposedly, its new generation of set top boxes is meeting good to excellent acceptance and sell through. Price is just north of $12, 52 week high/low 27/10.10. Earnings have gotten a severe haircut Q/Q, thus the price being at a "depressed" level (it hit a high of over 60 in '01). Any interest or comments?

To: Dale Baker who wrote (16368)	2/6/2003 5:24:08 PM
From: Paul Senior	Respond to of 78667

Dale Baker: "An interesting perspective on our recent discussions about strategies..." I'm not one for competitive investing. Where the goal is "show a profit in years the indexes are down, and beat the S&P 500 in years it shows a profit." I'm more driven by achieving absolute dollar amounts in a future year. And of course, I'm one for averaging down. It's my opinion that this question and answer from Bill Miller in that Barron's article is more relevant to value investors: Q: You have bought this (edit: Kodak) all the way down. Can you talk about that strategy? A: Lowest average cost wins. It's rare for us to pay up for anything, and it's common for us that if the stock goes lower after we buy it -- and it always does -- we will buy more of it. If we're not buying more of it, then we'll be selling it, because it doesn't make any sense to hold onto a declining position without putting more money into it or changing the weighting in the portfolio.