Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jeffbas who wrote (2826)	12/20/1997 10:47:00 AM
From: Terrapin	Read Replies (1) \| Respond to of 78715

Sorry for contributing second-hand information but a similar discussion on interest rates for the coming year took place on Friday nights Cavuto's Business Hour (or whatever it is called). The conclusion was that real rates were high and would be coming down early next year. They used this to explain the flow of money into utilities and similar stocks.

To: jeffbas who wrote (2826)	12/20/1997 11:39:00 AM
From: Michael Burry	Read Replies (3) \| Respond to of 78715

Re: Barron's/interest rates/Nike My Lord! Has everyone seen this am's Barron's? Nearly every article says the sky is falling. I can't disagree with the logic, since Jeffrey and I worked through most of the same stuff early this am. But I must say that the volume of people in agreement is mildly disconcerting for this bear. Paul - I posted this on Nike the night of its earnings release over on the Buffettology thread - relates to our previous discussion of Nike on this thread: Nike in many ways meets many of Buffett's criteria, but is suffering currently. Looks like its hitting $40 after-hours. One thing that strikes me is the ballooning AR and Inventory, their stock buyback in the face of shriveling cash flow, and their commitment to a $1 billion two-year capital investment program, all while they tout their financial strength by pointing to a current ratio of 2.5 that is based on poor quality assets. I see charges in the future and a management that is not willing to own up to everything just yet due to fear of frightening Wall Street even more. This stock might get really cheap. But Nike won't stay down forever. Just an idea: file away Nike as a buy in the $20's and buy in when it gets there. This year should prove to be an aberration, and there will be less shares out and improving cash flows/balance sheet once it is all behind us. Here's hoping the market gets really inefficient. Good Investing, Mike