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

To: Ron Bower who wrote (3970)	5/1/1998 3:09:00 PM
From: James Clarke	Respond to of 78465

Just sold my HYDEA at 6. A nice surprise. It goes to show something I like to say. When you buy a business for half what its worth, all the surprises tend to be good ones. I didn't see anything spectacular in the earnings report. All it said to me was that these guys are on track to make 40-50 cents this year, and Saucony sales are growing in a very poor athletic footwear environment. If Merck or Microsoft had released similar numbers, their stocks would have tanked. The stock was just so cheap that a move to 6 was simply acknowledgement that this is a real business. Maybe it goes to 9 or 10, maybe it doesn't. With such a small float, who knows. I sold because it reached my target price of net/net value. I didn't invest in this for the business fundamentals. I thought twice about selling at a valuation that I would normally see as a buy, but that was greed talking. I've got my 45% gain in a much shorter time than I was willing to be patient, so if it goes higher I have no regrets. Especially because I had a relatively big bet on this one. Hesitate to say "bet" because I do not think I was taking a bit of risk. That was why HYDEA was one of the few stocks I held onto as I have been liquidating based on the market valuation level. Ben Graham is smiling down on us today.