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

To: Jurgis Bekepuris who wrote (3627)	3/24/1998 9:57:00 PM
From: jeffbas	Respond to of 78592

On stocks generally, I like ones with low valuations where only a modest change in fundamentals or perception can have a solid impact on the price. That way, I am not requiring a whole lot out of the company to get a good return; and the risk is usually less than average. Cal-Maine Foods (CALM), the commodity egg producer which I mentioned a while ago, is one where I think no change in fundamentals is required, just a change in perception. LTXX I view as one where only moderate success with its Fusion product would lead to a material rise in price. The two references I mentioned earlier suggest that the odds are decent that the company is at a positive inflection point in its fortunes. (Gruntal was not even interviewed for the Electronic News article, and they are the firm with the strong buy on it - target $11 - because of the new product.) KLIC is obviously a better company and decently valued. I also see no inflection point. KLIC will do better only if the industry or its perception changes. LTXX will do better if they make a hit with the product. I prefer the stock price to be more a function of what the company does. Two caveats - I probably know a lot less about technology than you do, since that is not my background, and I am NOT jumping up and down for LTXX. I think it is interesting and bought a small amount. I liked DPMI much better at 26 when I bought it, primarily because every way I looked at it I saw it as "mispriced", which is a label I put on a company I find exceedingly attractive and worthy of almost unlimited investment.