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

To: Paul Senior who wrote (17430)	7/20/2003 8:40:59 PM
From: jeffbas	Respond to of 78520

Paul, you left off my FARO (#16693) selling at book value when I recommended it, and SEMI (#17257) at less than half of book. FARO has more than tripled; SEMI is up 50%.

To: Paul Senior who wrote (17430)	7/21/2003 7:54:44 AM
From: Rock	Read Replies (1) \| Respond to of 78520

Jim Clarke also brought up Saucony at around $5. It's just now passing $14.

To: Paul Senior who wrote (17430)	7/21/2003 8:48:44 AM
From: Dale Baker	Respond to of 78520

Happy to report that MAXF keeps putting up good numbers, and now sports a dividend too: biz.yahoo.com

To: Paul Senior who wrote (17430)	7/21/2003 11:38:41 AM
From: Bob Rudd	Respond to of 78520

Paul: Thanks for mentioning the success stories. I'm sure there are many more...it's been good to be long during this amazing updraft, but I gotta say, some really junky stuff has been levitating...and run-ups in better stuff look rather generous. Maybe my perception has been altered by beat-downs in the bear market preceded by the death valley for value stocks when internuts & techs were bubbling at the expense of other stuff. Back into SGR on what looks like a possible[???] bottom at 8.08. My track record buying anything energy-related after sell-off's has been less than steller. Given the deteriorating fundamentals from credit-challenged utility customers and indications of a glut in generating capacity, this is pretty speculative despite the 30% haircut from prior sale.

To: Paul Senior who wrote (17430)	7/21/2003 12:31:58 PM
From: David	Read Replies (1) \| Respond to of 78520

Paul: Just to let you know, I am still holding MAXS. And, you're right, these value plays take a long time to finally pan out but usually the wait is very rewarding and I can't say that I mind waiting too much especially if I have a few in the hopper. In that case one investment is usually working out within in a brief enough time frame from the last, making investing life interesting, and waiting for the others goes by somewhat unnoticed. I was always curious why Ben Graham chose a two year horizon for his value picks to work out. It seems arbitrary to set a calendar date. I believe if I were to set such a self imposed forced move I would force myself into making mistakes. I've continued holding companies like MAXS beyond two years (EBSC well past two years -- over four years) after verifying the company's financial position during periodic financial reviews. That gives me confidence to hold on. (EBSC will yield me over 16% per annum, which I am satisfied with, although I believe the company is worth much more than the management buyout price given the company's cash flows and balance sheet). Interesting Stock Options discussion on MAXS Yahoo message board, BTW.

To: Paul Senior who wrote (17430)	7/26/2003 11:53:07 PM
From: Steve168	Read Replies (2) \| Respond to of 78520

Paul, Agree patience is absolutely required for value investors. The market rewarded value investors greatly in the past 3 months. I don't expect such 40-100% gains to continue, maybe 10-20% range per year. Want to reiterate my last below-cash play PCYC. I initially recommended at $4.5, it went up to 5.05 in over a week, now retreated back to 4.6-4.7 range, I believe the stock should reach $8-10 in the next 12 months. It is a biotech company with phase III cancer drug in trial, with $6 in cash and no debt. This is my number one long position and I am still buying at current range...