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

To: Ron Bower who wrote (2966)	1/7/1998 2:37:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78748

Correction - Brokerages do best in a volatile BULL MARKET. On MEOHF, I read some of announcements. It looks to me as if they completed their buyback program for now, pending review of their capital needs for Qatar project. So I guess purchaser was just some institution. I do not understand why trend has been steadily down for quite a while in the face of good results and apparently growing demand. This is the key to knowing whether this is a cheap stock or not. Certainly looks cheap.

To: Ron Bower who wrote (2966)	1/7/1998 11:40:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 78748

I'm real skeptical about brokerage stocks, no matter what I think of the company. Given that I think the market is way overvalued, I would not invest in something that gets whacked twice if the market tanks. Once for being an overvalued stock like all the others, and then more for its business suffer from a bear market. I'd much rather invest in a business which would still be the same regardless of the level of the stock market. In other words, brokerage stocks are very high beta. If you are bearish on the market, that is exactly what you don't want. If you think the market is going much higher, fire away. But I don't think you'd find much support on this thread.