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

To: Paul Senior who wrote (16552)	3/7/2003 4:41:13 PM
From: Paul Senior	Respond to of 78658

Buying a very small amount of RSCR. biz.yahoo.com Selling at p/e 5-6x, if management can deliver their .50-.55 promise for next year. biz.yahoo.com And that might be possible. P/sales is low at .07. So there might be some room for margin improvement. Book value is about $7.2/sh vs. stock price close of $2.79/sh. In past good years, the company's shown an ROE of 15% or more, so $1.00/sh might be possible m-a-y-b-e at some way-in-the-future date. Two howevers: 1)gov't pays for RSCR patients and gov't may have altered payment amounts or rules such that those past good times might not recur. 2) Debt is high. (d/e = 1.43, per Yahoo). President/CEO Geary, who sold stock at $8 level (5/'02) became a buyer (12/'02) at $2.75. At current price, I'll bet that upside potential is greater than downside risk. jmo. Paul Senior

To: Paul Senior who wrote (16552)	3/7/2003 11:02:07 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 78658

Paul, I was searching through my brokers international bond inventory and found some Norsk hydro bonds that were paying 6%. This could be a nice investment especially if one expects the Kroner to appreciate against the US dollar.

To: Paul Senior who wrote (16552)	3/8/2003 3:07:49 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78658

<< NHY (Norsk Hydro):>> yes indeed NHY is a solid stock. I do regard NHY as an oil play, since about 80% of it earnings currently are generated from its oil operations. I think about doubling up my initial position after my customary 30 day waiting period after the 1st purchase is over. Yes I am following my trading rules pretty religously these days. I sold my position in PFE. Fundamentally it looks very cheap and the sale is a little opportunistic since PFE jumped a bit the last few days. The reason i sold is is due to an asbestos liability I discovered snooping around in 10k statements (heritaged through Warner-Lambert) and the fact that assumed Pension returns are at 9%. This does not fit the profile of an ultra conservative company any more. I have no idea if the asbestos liability is significant or not but I decided to take my trading bucks for now. I am looking for another investment in the pharma sector right now - ABT being my favorite. I doubled up my starting position in GD. The stock looks cheap and I didn't found any indication of funky accounting in its balance sheet or 10k statements.