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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (23984)	10/25/1997 10:12:00 AM
From: Kapusta Kid	Read Replies (1) \| Respond to of 132070

MMF, you might want to search this thread for one of Burke's posts on his "thirds" technique. What I have done is continue to load up on a company with a good value scenario. On the Value Investing thread, we came up with WHX: the company was @ $8-9 a share, but had $16/shr in cash and a book value of @ $28-32/shr. The problem was a nasty strike by its union workers over the issue of pension benefits. By the time I had completed my due diligence, WHX was trading <$7, so I took a position. As the shares dropped down to @$5 1/2, I accumulated lots and lots more. There was little to no risk at those prices.

To: Mike McFarland who wrote (23984)	10/25/1997 12:53:00 PM
From: Knighty Tin	Respond to of 132070

Mike, I'm going to jump in here. I use a thirds system for entering and exiting stocks, CEFs, and options. So, I'll buy a third, if I still like the stock, buy another third lower, etc. Just the opposite on selling. If you have 300 shares for a full position, that would mean buying three times as the shares went lower and popping champagne corks on the thirds you own if they go higher. But I would not recommend doubling up what is already a full position. There are too many fish in the sea to double up in a diversified portfolio. Good luck, MB