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Strategies & Market Trends : Action & Options- Taxikid plays -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (3185)	1/4/1998 7:58:00 PM
From: Druss	Read Replies (1) \| Respond to of 4339

Ray--If you don't mind my throwing in my two cents on Book Value. I find it very difficult to accurately access Book Value. The companies may have indeed invested huge amounts in machinery but if the company were to fold the only value of that could be scrap. Five million in machinery on the Book Value may be fifty thousand in actual return if the company were to fold. This may be true also of office, warehouse and land values in the event of bankruptcy. They may be substancially less. On the other hand companies may have land holdings that might even sell for more than anticipated. I pay particular attention to cash and debt when looking at a company. A company with cash and no debt normally has far more flexibility and chances for profit and expansion than one with simply a high book value. The companies you are looking at sound interesting though. I would not discount what you are doing. It certainly gives you starting point to work from. You can't totally ignore book value. I just wouldn't count on that protecting you in a shakey investment. Particularly if a company persists in running quarter after quarter of debt. Debt run ups can devour the book value even if real. All the Best Druss

To: Galirayo who wrote (3185)	1/5/1998 11:43:00 AM
From: taxikid	Read Replies (1) \| Respond to of 4339

ray.. many of the stocks i trade.. are special situation stocks that have been oversold.. {thus i buy} or overbought{and i try to sell} but the price to book is not an indicator.. in most of them.. i couldn't begin to tell you where the significant movements come from.. the indicators are different for most stocks.. nice aipn.. dumped all of my shares.. nic % gains.. i am too hung over to know exactly what i made.. it was a pile though.. 2 trading days into the year and whammo.. i hafta find a stock today.. i seem to be out, except my long term creaf.. which i ain't selling now anyway.. taxi