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

To: Scott Mc who wrote (3126)	2/1/1998 8:31:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 78565

Scott, Basically, I just see a lot of people overlooking a durable enterprise because of its debt load and the Asian crisis, both of which have nothing to do with operations long-term and 4-5 years out will pass. At that point you will all those cash flows flowing right to the bottom line rather than debt repayment. Any stumble in cash flows due to Asia will be more than made up in the future as they continue their aggressive investment in Asia for cheap and as they restructure heretofore very poorly managed Pizza Hut operations. I see it as something of a near-guarantee long-term with very little downside. As for the valuation, I would say that it is fairly priced now only in a short-termer's eyes, and I outlined some of the upside in the article. Mike