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

To: P. Ramamoorthy who wrote (2973)	1/8/1998 1:07:00 AM
From: Richard Barron	Read Replies (2) \| Respond to of 78746

Ram, I just use a company that has consistently grown both revenues and earnings. I like to see consistent quarterly growth as well as yearly. MEOHF is a cyclical company that has a huge percent of the commodity market. About 2-3 years ago a company was interested in buying a significant position of MEOHF when it was near 7, They may be accumulating again. All the restaurants I mentioned are struggling, but have performed well long term as far as growing earnings and revenues. They earnings has slowed down on all of these. ELXS is the only one I know that is accelerating earnings without much growth, but they aren't expanding much, so they concentrate on managing better instead. APCC was a darling that fell out of favor a few years ago. When the earnings turned sour, the stock dropped 70%, and then when earnings stablized and started to grow, it tripled it's price in less than 2 years. Same with BBY. Same with AVID. When the franchised restaurants stablize earnings and start to grow again, I expect a return to multiples of 15-20 or higher. These will generally double when that happens, but I don't feel that it is here yet. I like ELXS and APPB best at these prices followed by RDHS, STAR, RAIN, and APSO (which had insider accumulation, but they must have been surpised also). If any of these pull back another 15-20%, I'll start accumulating, with 1/3 of my desired position. If I'm too soon, I won't get burned bad, and the long term prospects should still be good. NMGC should fly if it's next earnings continues from .09 to .15 to .25. It is possible to come in .30 or higher, which should propel this stock trading around 14. I don't know what the streets projections are, so do your own research. Earnings are probably at least 4-5 weeks away. 1-408-988-7020 is the # I have. I feel very wary of the market at this point, and will make up my 3-4 week direction after Friday's employment report. I fear it is going to be significantly stronger than the bond market is anticipating. If so, I'll be short more than long on new investments. The street is finally believing that 15% earnings growth is not going to happen for the S&P this year, which should limit the upside, even if bonds stay strong. Here are some very low P/E stocks from a 3 month old list. ABL, CPN, IBIN, PFINA, WRC, DYHM. Some may be worth researching, especially if they show strong earnings, Here are a few stocks that had significant share buybacks. ABIX, JAR, BOSA I also like EML and MRE. I'm not following these as I'm trying to find companies capable of rapid growth with low valuations. regards, Richard