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

To: Paul Senior who wrote (16436)	2/16/2003 8:16:08 AM
From: David	Respond to of 78534

I misunderstood. Thought you were considering selling and wondered if I was missing something. I view it as a hold for the reasons you stated -- p/e, low ROE, insider selling. I think the ROE is a bit better than reported if you remove the cash from the balance sheet. I think the business yields fairly well. The insider selling is disturbing though. Glad to hear you were considering buying more.

To: Paul Senior who wrote (16436)	2/22/2003 7:46:43 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78534

FWIW Book value: Ran across this comment in online Barrons: <<Q: DO YOU THINK THAT INVESTORS OVERUSE BOOK VALUE? A: Well, I DON'T THINK THEY UNDERSTAND HOW IT GETS IMPACTED. Book gets written down by all these write-downs, extraordinary write-downs. Some of these pension issues get put into book. During the wild bubble period, companies were buying back stock. And so you have book value that gets whipped around; I don't see how it is helpful and it is not comparative. And if a company is taking a huge write-off, then they have a low book [value]. So they have a great ROE (return on equity), but it is not a useful technique.>> online.wsj.com I doubt this comes as a stunning revelation to anyone on this board, but thought it was worth a 'pushpin' for the way it summarized the caveats.