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

To: Scott Mc who wrote (3132)	2/4/1998 5:51:00 PM
From: Michael Burry	Read Replies (3) \| Respond to of 78526

surprising to me how many tech stocks coming up on your value screens Thanks for the feedback, Scott. The amazing relative strength of the Nasdaq over the last two weeks is a testament to the value in the sector. Despite the number of times tech comes up, I'm frustrated because I just don't know it. On my site, I was preparing Speedfam (SFAM) as my pick of the month - selling at 24 with 11 in cash. I decided against it on Feb 1 (it was 3/4 written) when I saw the ballooning receivables coinciding with the Asian crisis. My industry-insider friends say it makes a great semi equip product. But I also saw that its cash flows are negative due to high working capital requirement and immense investing/capital expense that has been ongoing with no foreseeable stop given the pace of change in the industry and their recent plant expansion. So I said no - for the portfolio and the site. Today? Up 27% out of nowhere. I'm out the opportunity cost of the gain and I still haven't found a replacement pick of the month. How should it be valued? Beats me - I can't seem to figure it out with financial analysis. Anyone out there that knows how to value tech and can point in some easily understandable directions? Mike