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

To: Paul Senior who wrote (2920)	1/6/1998 12:48:00 PM
From: Richard Barron	Read Replies (4) \| Respond to of 78714

Paul, Thank you for the compliment. You must be pretty thorough to have researched back to post #85!!!. I try and figure out which stocks are undervalued with decent growth, or return 15% by staying steady. I also trade REIT's. The easiest way to make money on value stocks it find a bucket of stocks growing by 25% or more and trading at 12 times earnings or less. I also look for any growth with a P/E under 7, and ones trading at less than 70% of book value. I look at every earnings report in IBD every day to screen the stocks. Currently some examples: ACTC - growth slowed to 50% earnings growth in the last quarter, and P/E is under 15 now. Consolidater with huge growth. I will buy more under 4. ADAM - turnaround potential 2 quarters of earnings after years of losses. Am waiting for 3rd quarter report, but if .07 or more, I may accumulate. ADEX- Low P/E in a company that shows it can grow. Will buy more near 16. ALPH - buy near 11: recovered strong in last few weeks. Decent growth over last few years. This is taking to long, I'll just list the rest and why it is a decent value. APPB- consistent growth, low P/E. BMLS- 70% of book, low P/E. DSWLF- * - most undervalued stock on the market. Safest to build a position slowly or accumualte on a breakout above 19. Waiting for next earnings report will show effects of Asian problems if any. 35% earnings growth with a P/E under 8. Pretty incredible value. ELXS-Great management, very low P/E 5 years 15%+earnings growth. GES- Very Low P/E ISTN - accelerating growth, am trying to buy below 9 MAX-low P/E after one bankrupt customer writeoff backed out. MEOHF-very low P/E. NMGC-* Huge growth P/E- less than 15 on last quarters earnings rate, looks to me like they are blowing away any competition. OO- President bought another million shares at prices near these levels showing high confidence in long term prospects. PTNX- Very low P/E with flat revenues. Apparently revenues may accelerate QGLY- risky, but huge growth with low P/E. Must be scared of competition hurting their margins.Stock has been very weak SBEI- risky, looks great except flat revenues in last quarter and very weak stock price. Very low P/E with huge year over year growth. VIP- Risky, russian company. low P/E strong growth. currency worries. ZILA- biotech that is breaking even and consolidating industry of dental supply distribution and lots of potential for a cancer detecting agent for mouth cancer. If the agent gets FDA approval, this could go up 3-10 fold in a few years. If not, The company may be able to be worth 50-100% of current price in 2 years or less by new growth. here are the huge potenetial winners that I am waiting for another earnings report that have huge growth. ADVH - 100%+ revenue growth, price is 25% cheaper than it was 5 months ago. DHSM - 100%+ revenue growth . I'll buy under 10 ESCMF- 200%+ revenue growth. I'll buy under 35. MODT- 100%+revenue growth. I'll buy under 20. NTAIF- risky since revenues dropped quarter over quarter. Very Low P/E SCSC- just following XC-Just following, low P/E, great insider buying also. regards, I also follow HDCO, IDTC, INVX, Richard

To: Paul Senior who wrote (2920)	1/7/1998 12:18:00 PM
From: Richard Barron	Read Replies (2) \| Respond to of 78714

Paul, Here are a few other high growth with reasonable to inexpensive valuation stocks that I am following, but waiting on the next set of earnings. DKWD, MRE, NWCM, QUST, STGC, TSCP Many restaurant stocks are getting creamed. I think these will all be good buys in the next year, but it's a little early. APSO, APPB, STAR, RAIN, Richard

To: Paul Senior who wrote (2920)	1/9/1998 8:56:00 AM
From: Richard Barron	Read Replies (3) \| Respond to of 78714

Paul, This morning is a good example of value to me. QGLY has 40 million in sales the first 9 months versus less than 1 million last year. The company has earned .73 versus a loss last year. The stock price has dropped 30-40% in the last 2 months. Today they announced a stock buyback since they feel the company is undervalued and they have almost no debt. Percentagewise it's only a 1 or 2 % buyback, but this is the first year that they have been profitable. The current P/E should be less than 15 x 1997 earnings and maybe as low as 10 x 1998's earnings. They will have competition at some point, but as of now, momentum seems to be with QGLY in lightof last months approval to sell cold-eze to the military. Richard