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

To: Sam Citron who wrote (19462)	7/21/2004 5:07:34 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78745

The issue with LR has previously been high debt and low return. They recently paid off debt, but the return has not increased. On the other hand, CX's return on equity has also dropped to almost LR levels, so both companies are somewhat comparable now. I would probably avoid buying either here, though I continue to hold CX. There is also an issue of partial holdings (like LR's holding of LAF) of companies around the world. CX has similar holdings in various countries. I don't like this, since it makes the financial statements almost impossible to decipher, especially since both LR and CX are foreign companies themselves. You have to trust that the management does not play games with accounting. Jurgis