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

To: Michael Burry who wrote (3660)	3/26/1998 9:24:00 PM
From: Wallace Rivers	Read Replies (1) \| Respond to of 78666

I'll bring this one to the thread's attention again, with the disclaimer that I am long in what I consider to be a severely undervalued situation in a near perfect operating environment. The reason I bring it up again is that it traded OVER 20 TIMES (according to my sources) average daily volume, with one block of approx. 1 million shares, or 4.5% of shares outstanding. This isn't the guy down the street calling his broker (unless the guy is a mutual fund or hedge fund manager) for an order. Somebody is placing a big, big bet. The company is Resource Bancshares Mortgage Corp. (REMI). 15X '97 earnings, 8X '98 estimates. Projected to grow at a 30% clip over the next 3 years according to the brokerage firm I use. Cheap IMHO and worth a look see just because of the huge spike in volume.

To: Michael Burry who wrote (3660)	3/26/1998 9:38:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78666

Okay. I stand corrected. How many stocks do you think you actually do know? Your portfolio turnover is what, 100% if you include 1997. Plus stocks you evaluated that you didn't buy, that you should have bought? You know a bunch more than 10-12. Even the last 3 you've just recommended. It's the second go-round for you with them, so you already know a lot-- maybe enough to quickly make a buy decision. As I say, stocks are like old girlfriends -- they keep coming back into your life, sometimes pleasantly and surprisingly so -g-. Yes, statistical. I would not take a sample of the stock market with less than 30 stocks. Darn few portfolio managers own fewer than 20 stocks. And only a couple - Torray,Yacktman,etc. own maybe 10+. Can't emulate Buffett - doesn't work for most. Unwinnable argument by anyone since I believe purposes, intent -know thyself- all apply to affect each person's decison how many stocks to hold. Even if I am right -ggg-.