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

To: Investor2 who wrote (3724)	4/1/1998 11:23:00 PM
From: Kent J. Davis	Read Replies (3) \| Respond to of 78523

To All, I am so glad you guys have an appreciation of book value, it is sure nice to be in friendly territory for a change. My criteria is pretty simple but my supporting calculations are fairly complex. I start the screening process by looking for something trading at around .5 times book; from here I pretty much look for low debt situations usually under 25% debt to equity. Then you have to dig in and check out the 10K and annual report to see if the management is doing the right things and find those hidden debts( leased stores, etc.) I am less concerned about the market value of the assets. But;some liquidity is good and I figure goodwill will be the first thing to be written off. Let me put two stocks I currently own up for your analysis- First is the much hated PARL- About .5 times book and no debt, it is currently buying back shares and taking losses on its losing product lines. Second is HOLO- A $3 dollar stock trading at 30% of book, it has some cash and little or no debt. However I don't think management has a real good grasp on what needs to happen. Be glad to share my equations in some later post. Ron, your analysis of these stocks will be much appreciated. I got in low and am waiting for a jump into profitability. I realize these are considered outrageous dogs by most; But , so was JBM . Kent