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

To: Paul Senior who wrote (2969)	1/8/1998 2:55:00 AM
From: Michael Burry	Respond to of 78740

Remember Sybron Chemical? I brought it up here at around 22, and I rode it to 32.5 on a management takeover offer, but got out as I didn't want to play the arbitration with that gain. Paul I think you played a little arbitration with it. Now it turns out that the management group revealed the value with its offer. GenCorp evidently offered 38/share in cash for Sybron. But today Sybron rejected that at the same time it revealed the offer. Closed today at 33 1/2 on a trading halt. This will be interesting. I guess we know the private market value is well above that. I used the same strategy in finding Sybron to find Knape and Vogt Manufacturing (KNAP). It's advancing now too. The strategy is based on ultra-low-profile boring US-only businesses with steady growth, low PE multiples at the low end of the historic range, high management holdings, and conservative financing. I was reading Graham and Dodd I think when I saw that there were several ways to ensure predictability of earnings. Buffett pairs steady growth to monopoly situations. But you can also pair steady growth to boring small caps that are never spoken of, and hence more likely to be in industries not overstocked with competition. The book may have been Copeland's Valuation, but I'm too tired to think hard on the source. Mike