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

To: Michael Burry who wrote (2984)	1/8/1998 2:52:00 PM
From: Ron Bower	Respond to of 78752

Mike, I wasn't referring to Medusa, but to the sector. In surveys taken at the end of the 3rd Q. the sector had great growth and were expecting it to continue. More recent articles indicate strong revs in '98 but that sales will not increase as much as in '97. In some areas of the country they anticipate flat to negative, yet others look for the growth to continue. I just looked and Medusa's operations are located in areas where growth is expected to be the highest. However, revenue growth is not necessary for profit growth. The trend has been for the larger operations to acquire the smaller. The big outfits are constantly looking to buy small existing operations and the smaller ones are disappearing. (If they can't buy, they force them out.) They are being aided in this by government policy and regulations. Their objective is to control the market area. (You can't pack up and move a mine) Once this is achieved, the profits take a huge jump. I'm surprised at Medusa being so cheap because they have been one of the most agressive in acquisitions in recent years. You've made a very good pick, particularly in this market. Sorry about any misleading comments. I should have looked at Medusa before I posted. For what it's worth, Ron Ron

To: Michael Burry who wrote (2984)	1/9/1998 10:44:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 78752

Mike & others, I've tried to buy into weakness and sell into strength. Four people whose opinions I respect have indicated we have a Bear market. I have felt this to be a market correction. Tech stocks, stocks with Asian competition, and stocks with high PEs are being sold sold off and IMO it's the thing to do. At the same time, many stocks are being sold that will continue to do well. I think we are now looking at a sell down of some stocks but the monies will come back into the market. IMO the strength will be in stocks that continue to earnings growth and more conservative issues like your Medusa. If I'm wrong, my recent buying may be a mistake. What do we have? Bear or correction? Thanks, Ron