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

To: Paul Senior who wrote (3272)	2/21/1998 7:15:00 AM
From: valueminded	Read Replies (3) \| Respond to of 78507

Paul: Although I appreciate your sarcasm and the evidence of your utter disdain for anyone who would dare doubt the value of this market. my question still remains. If you were to look for valid short candidates, what would you look for ? The opposite of value plays (your analogy to walking and walking backwards) does not work. Nor should it My letter said there were a lack of value plays, not that there were not any. If you run screens of net current assets, (classical Graham) screen you find maybe 10 hits - if you further filter by looking at insider holdings, how they received them etc. the list falls even further. Additionally, although this may be anathema to those on this thread, I think that a portfolio should be balanced. In my case, I am long 90% and short 5-10%. Unfortunately, I have done a lousy job at selecting shorts, (something I freely confess) and the point of my letter was not my interest in becoming bankrupt but what would set your alarms off about a stock. thanks

To: Paul Senior who wrote (3272)	2/21/1998 11:26:00 AM
From: Dan Packer	Read Replies (1) \| Respond to of 78507

Paul Senior should call Michael Price. Price seems to be having trouble finding good value. From reading Senior's posts, I sense that he is really a market timer, who finds oodles of stuff. With a rising market his stuff will stick to the wall; with a falling market, oops. Shorting against this momentum crowd is difficult and dangerous. I haven't found many 'investment grade' shorts. On the other hand as a hedge against a long portfolio, it costs nothing, and prudent. Given my cash position that I can't seem to find anything to use it on, I'm considering erecting some boxed positions and bombing away when the punch bowl gets pulled.