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

To: Suma who wrote (20860)	3/11/2005 5:30:45 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78847

Suma: about WMT. I find that to be a problem for me also. VERY high shame factor for me -- my wife's totally against owning WMT shares and against shopping there. OTOH, stocks with low pride/high shame factor have often worked out VERY well for investors. I could list a few such stocks, but of course, I'm too ashamed to mention them. :>/

To: Suma who wrote (20860)	3/11/2005 5:37:31 PM
From: Brendan W	Read Replies (2) \| Respond to of 78847

Hi, Suma. I also have added to my Microsoft holding recently. Same story as Wal-mart. Hated... because of the powerful impact of their business model on the landscape. But if you respect Buffett's first rule ("don't lose money"), and the second rule ("don't forget the first rule"), you won't find a whole lot of places to put money right now. I curse Microsoft on a weekly basis because of my experience with Windows, Outlook, Frontpage ad nauseam. How can they get away with that performance? None of that should matter if you are following the cash.

To: Suma who wrote (20860)	3/11/2005 7:26:31 PM
From: E_K_S	Read Replies (2) \| Respond to of 78847

For an undervalue play with a company that has a lot of potential, I am buying ABS (Albertsons). They own the Sav-On and Osco Drug stores. They recently announced that their Shaw's division will implement the "Store w/in a Store" and build more Osco Drug stores in their Shaw's stores. The company is in a four year restructuring with a lot of potential but have had their problems (mainly with labor contracts which now have been resolved). They pay a good dividend while you wait for them to get their stores profitable. They have a franchise in their drug stores which I believe they have not really structured to complement their grocery operation. If you are looking for a value play with low risk, this is the company you want to speculate on. It may be another 24 months before earnings begin to grow. A lot depends how management differentiate their businesses with high end stores Vs specialty stores. Management has a long term plan and have been quite successful in negotiating new labor contracts. It's not a slam dunk as Costco, Target and Walmart provide similar cost effective services. ABS has a better Internet presence and if integrated with their local facilities (especially their pharmacy division), I think they can be very competitive. I like their plan to expand into the sunbelt states (Phoenix, Nevada etc.) where many of the baby boomers plan to retire and will need their drugs. I have been wrong many times but have established a large position in this company at prices below $20. My target (if management can fully implement their changes) is $40/share in 36 to 48 months. EKS