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

To: jeffbas who wrote (3616)	3/24/1998 4:02:00 PM
From: Jurgis Bekepuris	Respond to of 78576

Jeffrey, Re: LTXX. My approach is not to buy tech companies that are behind the pack. It's OK to buy 2nd and 3rd and 10th company in non-tech business (e.g. what is the order of Citibank, Wells Fargo, JP Morgan, Nations Bank etc.?). It's usually a losing proposition to buy a tech business in 3rd position. Being behind in tech means lower sales. Lower sales mean low profits, means low R&D, means falling behind even more. To summarize, a value play in tech land may be a very lousy play, because they may never recover. Of course, they may be bought out, but that is gambling, not investing. In case of LTXX, I see the value - PSR < 0.9. However, I also see TER and CMOS as the leaders. If you can figure out whether LTXX has a defendable niche that TER and CMOS won't touch, then it may be a great play. Otherwise, forget it. If you have to buy LTXX, get a subscription to "Infrastructure" and check their story on it. On the other hand, some semi-equip leaders have interesting valuations now: KLIC, ASYT, CFMT, SFAM. The valuations may become even lower in the future, so do your homework and buy your choice. Good luck Jurgis

To: jeffbas who wrote (3616)	3/24/1998 4:03:00 PM
From: Michael Burry	Read Replies (3) \| Respond to of 78576

I would say that many of the ideas that were most ignored here turned out to be the best. James Clarke screamed St. Joe at us when it was half it's current price just a year ago. He was even adding "SJP" to the end of his notes after his name and still most of us ignored it. IMO, consensus is not the goal in any event. If most people are declaring value investing dead, and most value investors are fully invested, then I don't see that as personally bad (though it may be for the market). The result is a thread void of ideas and discussion for a while. It won't last forever. I'll take a look at LTXX. Mike