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

To: Wallace Rivers who wrote (18242)	12/23/2003 4:56:32 PM
From: Paul Senior	Respond to of 78715

Wallace Rivers, sold most of my DRD today. I don't hold much hope of a price increase by the buyers. Chairman Cutie can argue the takeout price is the same as what he was selling his shares for last year, and he could say the business hasn't much improved since then. (His $17/sh. sales were of option exercises of 0.58/sh., so easy enough for him to sell gobs at $17.) In my opinion though, it's a take-under. DRD's ubiquitousness in NYC gives it a lock in that market. (In past, that's been reflected in DRD's good margins compared to national chains.) Very difficult for national competitors or mom-n-pops to challenge DRD in NYC given the real estate aspects - the costs and DRD's locations and DRD's size and focus. If one believes that NYC will come back economically, then DRD must (maybe) be a beneficiary of that. Sorry I didn't consider the linkage of DRD as regards the strong flu season. (Seems simple and maybe obvious enough now, but with my diverse stocks, focus for me is a problem -g-). Had I been aware of your idea and interest in DRD, I would like to believe I would have upped my position further. Ah well, we move on now to other stocks and other opportunities. Paul Senior