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

To: kolo55 who wrote (3280)	2/21/1998 3:52:00 PM
From: Paul Senior	Respond to of 78505

Paul K: EX and questionable/incompetent managers. Thanks for pointing out article. Possibly the reason the stock has been declining (inside knowledge of Barron's forthcoming report). Regarding management problem: this does seem to occur with many "value" stocks which I buy. For example also UHAL, RACC (now bankrupt), VVTV, APM (perhaps), VO (perhaps), and NTAIF (We both know about this one!). I'd guess most investors bail - this causes the price to drop. And sometimes never to recover. I'm trying to buy where I think problem is well known and will be overcome within a couple of years. Where the business will continue to move forward in spite of current problems. Where the alleged poor management can say, yeah that was long ago. We're better now. (-g-) (note to Honest Abe: I use -g- to mean grin or I'm smiling or there's supposed to be a little joke or humor here.) And I'm trying to diversify so that the inevitable RACC type doesn't devastate the portfolio. My feeling is (have no facts) it's the crooked managements we don't know about in the stocks we own that will really hurt. And as implied by the Exide article - the hurt could come from middle management too. This level is much harder to identify by funds/individuals who visit mostly the top management team. (Although in the case of EX - the top guy himself has a terrible rep with the investment community IMO - from what I've read. It's a pity if this is true and filtering down.) Company really has an opportunity to consolidate and do well. I like how they've taken a commodity item and expanded the service they provide: maintain customer stocks, remove old batteries, refresh pos advertising, etc. They are the dominant player in the auto battery business. Now if they could just get a decent return on their equity -g-.