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

To: jeffbas who wrote (2544)	11/27/1997 4:29:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78615

Jeffrey Bash: Whoa horse! Or chicken. I'm excited about calm -g-. This one could be a real hard-boiled winner -g-. Any more info. you've got please share. Selling at a low pe, low price based on yearly range, very decent ROE, decent p/bv., cash in till also. What am I missing? Data per Yahoo -- is it correct? Am I on track here? New co. - only 2 year history? (Have heard of it before some years ago- it's been around some? .. newly public? Who are competitors? GIVE ME MORE INFO!!! (if you please) Paul Senior

To: jeffbas who wrote (2544)	11/27/1997 10:56:00 PM
From: Michael Burry	Respond to of 78615

Re: WHX Just to make a disclosure, I recently bought a small position, but rather immmediately turned around and sold it upon further investigation and the release of the 10Q. I am worried about: Debt load - the company is actually borrowing the money to buy back shares, and the debt load is getting up there. With equity down to 500 million from over 700 million, the debt/equity is getting up there. If you include the pension and employee liabilities and the fact you've got renegotiate in 5 years, I worry about being too leveraged. All that cash is great, but it is largely offset now by debt. Is it getting more than a 9% return on its cash? I'm confused here. Business economics - The company may make anywhere from $1-$2.50/year in the next few years, but the uncertainty is very high. I am not knowledgeable enough to know how quickly and how well WHX can reclaim its old business. My understanding is that the low-cost producer will do better than others, but everyone will suffer from industry overcapacity over the next year or two. Do the employee reductions and benefit reductions make WHX a very low cost producer? And does it make sense for WHX to leverage itself so much going into a cyclical industry that may be turning down? I think this stock was a screaming buy down at $5 1/2 - $7, a good buy at $9-10, and now has the potential to go up to the $20 range. But I agree now with Paul that the margin of safety is hard to see. The book value seems real enough. I must say that I have been influenced to a large degree by my recent intense study of Buffett and Phil Fisher, so the steel business in general is not appealing to me. I pulled the plug on several stocks that don't make as much sense to me now, and WHX is one of them. Good Investing, Mike