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

To: Michael Burry who wrote (3554)	3/20/1998 3:52:00 PM
From: Lucretius	Respond to of 78594

Certainly :) NKE bounced predictably off the 50 dma today. We'll have to see what next week holds.

To: Michael Burry who wrote (3554)	3/20/1998 4:48:00 PM
From: Ron Bower	Respond to of 78594

Mike, Nice timing on Medusa. Thinking with my fingers-- Medusa and Southdown are very much alike. I really haven't looked at them, but it appears that the combination will improve Medusa's financial situation. The two companies are not conflicting in territory so they become basically they have just joined forces. This doesn't really give them added advantage in marketing. If they were competing it would be a different story. As I said before, the trend in the sector is to take out your competition so you can control the market, close down the low volume operations, minimize overhead from higher volume, etc. They are both so large already that the overhead savings isn't much of an issue, they aren't competing so that isn't either. About all I can see that it will do is make revenues more stable as they have more operations - shortfall of one operation offset by increases in others. The market really likes it, but I think it will look at it differently after they review the situation. I would probably take some profits by reducing my holdings and look to buy back to full position later. The combination should outperform the market in the next few years and would be a good hold. You have me wrong - I own a stone quarry, mining operation and had a asphalt/highway/heavy construction company before I started this. Cement is another area, similar but different. They are covered in the trade magazines I receive. For what it's worth, Ron