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

To: Steve168 who wrote (16390)	2/10/2003 9:24:12 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78497

Steve I picked up some AWRE Friday at 2.05. It is trading below book value of $3 and cash $2.2/share. No debt. What do you all think? I also had some ALVR, it is trading around 1.86 while cash is $3/share. I haven't done more than a cursory look at the numbers as listed on Yahoo on either of these, but my question is: "Do you see either of these companies ever becoming profitable?" Buying companies who are currently profitable for less than their cash in the bank is a wonderful thing, but when they're losing money when you buy them, the results on your "investment" dollar can be quite adverse. Timba

To: Steve168 who wrote (16390)	2/10/2003 9:47:52 AM
From: MCsweet	Read Replies (2) \| Respond to of 78497

AWRE and ALVR AWRE does not look attractive unless you are envisioning a rebound in earnings in the near future. ALVR looks like an interesting pick that fits in with the strategy as discussed on the Low Price/Cash Ratio Value Stocks board. The burn seems to have been reduced enough that you can wait for awhile for this company to turnaround, although the headquarters location of Israel makes me a tad nervous ... MC

To: Steve168 who wrote (16390)	2/10/2003 1:54:41 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78497

Steve168: I have a small package of such stocks, ALVR being among them. There are still quite a few out there that fit the category but I'm not buying new names unless I see any that seem exceptional (and AWRE isn't imo). I am intending to hold what I do have and give the category more time to show better results. Results for me have been spotty so far, and I wouldn't say satisfactory. With the market as low as it is, I'm tending to place my new bets elsewhere - on downtrodden stocks representing established companies with real businesses and with at least some earnings history. (-g- Although my results here aren't satisfactory either now.) -------------------- Couple of stocks on my watch list of below-cash, below book stocks were exceptional performers: finance.yahoo.com Had someone bought either as part of a package and held on, the profits here might likely have made up for any and all other losses in the package. I am still trying to resolve whether it is best to select specific issues after considering the particular outlook for the company, or else just buy a package of such stocks which fit the criteria (below cash, below book, no debt) Perhaps I may have had the worst of it: I chose to go with a package of stocks that "looked good" to me. And China- related didn't, so I wrongly passed on those stocks. Paul Senior