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

To: Paul Senior who wrote (2995)	1/10/1998 12:34:00 PM
From: studdog	Read Replies (2) \| Respond to of 78740

Nice thread. I am evolving from a momo, growth type investor to a value investor in this market (Many of my previously growth stocks are now value stocks :( ) Looking at book value, PSR, etc., I've found a few that I will throw out for comment if anyone has thoughts: Cypress Semi(CY): fundamentally sound chip maker selling for 1.2 x's book KLA instruments(KLAC): test equipment mfg. book at 2.6 x's (cheap for industry), no debt, better prospects as a test maker HCIA: Med info company with nice prospects but recent losses, selling at .9% of book (my favorite stock right now) Morrow Snowboard(MRRW): Fundamentally sound snowboard mfgr. hurt by industry wide inventory problems. selling at 50%(!!!) of book value. Will be one of the survivors or acquisition candidate in coming consolidation. Cabletron (CS):Pummeled networker selling at 1.74 x's book and 1.5 x's sales. Don't think they are going out of business. (CSCO 12 x's book) Rainforest Cafe(RAIN): A new value play since getting hammered; 1.4x's book, lots of cash, expected growth around 25%, forward PE of 13 Karl

To: Paul Senior who wrote (2995)	1/10/1998 12:55:00 PM
From: Ron Bower	Respond to of 78740

Paul, We seem to be in the minority on the thread. My thinking has been basically the same as yours and commentary by those pundits I trust has been the same. This is a correction in a Bull market, not a Bear market. Monies are going out of stocks with Asian competition, banks with Asian exposure, the entire tech sector, etc. We have a very unusual combination of international economic events. Asia is obvious, but we also have a large drop in oil stocks, in precious metals, and other things that normally don't happen at the same time. While the US has unemployment of 4.7%, Germany is over 11% and France over 12%. The US economy, job creation, inflation, etc. is an enigma to the rest of the world. Economists don't know what to make of it and the result is panic in the stock market. I just had to cut a lot of stuff that was basically a repeat of what you've posted. IMO - Investors aren't going to be happy putting monies into 5.7% returns and the Funds have to put the monies back into the market. In 45 days, after the earnings are posted, some stocks will be providing major returns. I transferred cash and doubled my account the end of Dec. I've been buying, have 25% cash left and am looking to be fully invested by end of next week. I had some big losses averaging down on Deswell, but am doing just fine the last few days. My recent buys have been firm, even some gains. Deswell flucuating but staying above year end tax selloff prices in spite of Asian bailout. Thanks for posting. The Bears were giving me concern and it's nice to see a post that reflects my thinking. LOL Ron