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

To: Michael Burry who wrote (3658)	3/26/1998 10:09:00 PM
From: Jurgis Bekepuris	Read Replies (3) \| Respond to of 78659

Michael, I glanced at ALR. Do you know what caused massive losses and revenue drop $147 mln -> $65 mln in 1994? Of course, debt/equity shot up at the same time. I would not buy this stock without explanation because we might be in for another surprise like this. In other words, how do we know it's not a cyclical high or a favorable-military-contract high with no future? Refac is very similar to ALR in its uncertainty. Look at max year chart @ Yahoo and 7 year revenues, earnings @ WSRN. The only positive is that they did not have loses - probably because it's mainly a holding company. Accounting and balance sheets are probably a headache. Sorry, that I am asking questions without much homework, but what I see is not very exciting. Looking forward for other arguments pro and con. BTW, I liked your idea on buying HWP. Did you follow through? My two macro ideas currently are HWP and BA. Don't ask for valuation models. These are buy-and-forget stocks of industry leaders selling below 1.5 PSR. They are not screaming buys, but just OK places to put spare cash. BTW, some people would substitute INTC for HWP. A matter of taste, I assume. :-) For more value oriented guys I'll throw in boring LDL. Good luck Jurgis