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

To: Kent J. Davis who wrote (3726)	4/1/1998 11:38:00 PM
From: James Clarke	Respond to of 78525

Less than half of book value. I'm interested. They're on my weekend list. I find that after doing research, about one out of five VERY low price/book investments looks good enough to buy. And the vast majority of those have been winners for me on short term holds. Thanks.

To: Kent J. Davis who wrote (3726)	4/1/1998 11:50:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78525

Kent Davis: PARL? PARL? I LOVE PARL! The thread anyway. One of my favorites. The posts should be collected and put into a book. IMO, one of the best reads for an investor. Scare the pants off you -gg-. Got almost everything: maybe shady and sleazy and self dealing management; stubborn investors who hung in for maybe years until they realized hung meant hanged -gg-; discussions about revenue without anybody ever admitting they bought the the product(s) or even any competitive "fragrance"; crooked MM's; posters' prayers and the of-course-always-at-the low, "it would make a great buyout for somebody"; up 1/8 so turnaround is beginning (this when stock was 5, then 4, 3 and couldn't go lower; a great value stock at 4,3,2... I actually start to shake when I read the posts --- Everytime I get cocky as a value investor and start going just by the numbers or think investing is just so obviously simple in today's market, I try to remember to stop at the PARL thread. So thanks for reminding me it's time I go visit...

To: Kent J. Davis who wrote (3726)	4/2/1998 8:44:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 78525

Kent, IMO - Companies with a history of making money (and I mean cash) will continue to make money. Companies that have a history of losing will continue to lose. It's a matter of good management that will increase shareholder value - this is not the price of the stock, but the value of the company. I don't think the ones you listed fall into that category. I look for the companies the market has dumped for the 'wrong' reasons. e.g. MAX (one of Richard's) had a customer declare bankruptcy. They wrote off the receivable because of it and it resulted in a large loss. The bottom fell out of the price. 1)They will recover most of the write-off, 2) they are generating $2.5M per Q and growing fast. I bought at 6.50 and sold 1/2 at 8.50. (thank you RB) It has fallen back and I placed a buy order this morning. I feel it to be an excellent small position long term hold. IMO - a low P/BV may be an indicator of a good buy, but it may also indicate a company that's actually in trouble. I have a long list of companies selling below BV, no debt, and a lot of cash that I've rejected because they aren't going anywhere. For what it's worth, Ron