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

To: Wallace Rivers who wrote (2932)	1/4/1998 4:03:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78659

Wallace Rivers: re HEAT, PMOR, ESST, OUCH. Well, you make the case for HEAT. Certainly looks like they can lose money indefinitely, and as they continue to try to improve, eventually at current very low price, something may/will change to bring the stock up to prior high levels. It's a company I guess where you have to have some faith. I don't have any. JMO. Re PMOR - nice call on your part. I recall that for me, it wasn't so much that the company had a lot of debt, but rather it competed with much more well entrenched and financially able companies - Dayton Hudson Target? and KMart and Walmart -so the debt load would prove to be a difficult burden when they needed to expand/remodel or otherwise respond to competitive threats. I remember thinking couple of months back that I underestimated what I thought PMORs options were when I read something(?) about how pretty smart they were being now about getting into some joint ventures with another company(?) regarding their stores. And I notice now (Yahoo) they seem to have a bunch of cash too. I've missed the runnup that several of these beaten down retailers have had - Venture stores (for a while), Filenes(and I particularly studied this one, but never bot...sigh), PMOR, Claires, etc. etc. Anyway, for me and IMHO, I'd rather you risk sounding defensive because people couldn't see the value in PMOR, than come back angry (or not post at all) because some jerk/jerks had talked you out of a winning stock. That being said, I still don't like PMOR -g-. Regarding ESST.... ouch. I own at higher levels. I'm betting on a triple from here within a couple of years. And I'm very wrong it appears. Sales are increasing, margins decreasing. I'm guessing biggest threat is Intel who is (are?) coming out with chips for this market. There are only a couple hundred employees in ESST (they outsource their manufacturing), so they can be, and have to be, fast and flexible. I'll deflect question of ESST's biggest competitor, biggest danger to the ESST thread experts. But with only 200 people, my guess is that anybody (some small startup for example)could come out of nowhere to hurt them. For me, their financials look okay, they've got good contacts in Asia, a good history of making money, so I'm holding on. And I own a package of these small tech companies, so I expect (hope) to be insulated from utter catastrophe. Paul.