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

To: Michael Burry who wrote (2782)	12/17/1997 9:30:00 AM
From: Allen Furlan	Read Replies (1) \| Respond to of 78600

Very helpful comments on consumer finance. Helps explain gnt large profit for revenue stream. Comapnies which rely on securitizations, which deal in sub prime markets, and which may use dubious accounting practices are high risk IMO. I will take my loss on ctys this month, sold 5 puts at 3 and will buy back at 4 1/4 or more. S&P rated their debt as B with negative implications 2 months ago, but the company is in much more dire straights. Also will probably own aac at 5 1/4 when my calls expire. Bottom line is that typical criteria such as book value and revenue growth are very deceptive for this sector. The S&P negative implications rating for gnt will keep me out of this one. P.S Good web site. Per write up on REITs an interesting play in this sector are company bonds backed by hard assets. I recently bought ACH January 2001 7% convertibles at par. Low risk with a possible conversion kicker.