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

To: 249443 who wrote (16710)	3/31/2003 11:52:41 AM
From: Jurgis Bekepuris	Respond to of 78625

SLE/CAG - I'll pass on both due to high debts. Also CAG executive salaries are quite high. Jurgis - who just finished ARMHY and RTRSY annual report reviews and is now an expert on British accounting - not!

To: 249443 who wrote (16710)	3/31/2003 11:43:10 PM
From: Steve168	Respond to of 78625

Talk about Value investing - Graham's "net-nets." ALVR in Barron's by: smartdadoo (49/M/PA) Long-Term Sentiment: Hold 03/29/03 02:07 pm Msg: 9928 of 9969 MONDAY, MARCH 31, 2003 AN INTERVIEW WITH ROBERT CHAPMAN JR. -- He's an investor first and foremost but he's best known as a colorful agitator crusading for the rights of shareholders through his El Segundo, Calif.-based Chapman Capital. With $100 million under management, Chapman has delivered impressive returns to his clients through a long-short fund that also focuses on turn-around situations and takeovers. Since going it alone and launching the fund in May 1996, he has put up returns of 20% a year on average, after fees: "One of the safest ways to play the turnaround in the telecom-equipment space, which has been decimated, is through what we call "cash-discount" plays, or what Graham and Dodd referred to as "net-nets." One of our biggest positions is a company called Alvarion. It trades at just under $2 a share, which is a 35% discount to cash on the balance sheet of about $3 a share. The burn rate has stabilized at about a nickel per share per quarter. Revenue has also stabilized at about $22 million a quarter. The CEO of the company, which is based in Israel, is conserving cash. We talked him out of making a sizable acquisition with the cash. Instead, he dedicated a significant amount to a stock buyback. The company also recently bought the fixed- wireless subsidiary of ECI Telecom called InnoWave for a mere pittance. This is a stock that is out of favor and that very few own. Q: What's the market cap? A: About $55 million. It has about $90 million in sales. (should be Market Cap $105M, sales $90M.)