Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Clarke who wrote (191)	5/18/1998 5:24:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 4691

Some Buffett-like stocks that I'm watching: UST has gotten creamed from a recent 35 to 25 1/2 today on tobacco litigation, though I fail to see where it will be hurting that badly. Looking through its 10-k, I see a company full of shareholder orientation and a value even if it doesn't grow. I like that. The dividend yield just hit 6.3%. UST has been a steady repurchaser of shares and hiker of dividends, but has halted both further repurchases and further hikes in light of the current legislative environment. It has been using its substantial cash flow to eliminate virtually all its short term debt obligations instead. MO looks like it could fall to 30 and I'd probably wait for that. Then you get a 5.3% yield and a great consumer franchise, albeit with some significant debt and potential huge liability - which is why I'd wait for 30. Past corrections in the stock have brought it down around 40%, and a 40% correction from its recent 48 high gets me to 30, where there's oodles of margin of safety. The payout ratio is much lower than UST's. BMC, the manufacturer I brought up on the Value Investing thread, is back to the low 16's - below the 17 level where insiders gobbled up shares after it's Fall fall. The 20% long-term ROE and 2.5 P/Book give a bit of value, but I'm most impressed by the degree of insider buying at 17-18 this past October. The stock rallied off 16 earlier this year, but was felled by a totally expected poor earnings comparison. sealpoint.com Other stocks I think are getting cheap again: Telebras is back under 110 and looks to be headed to my favorite hunting ground - sub-100. St. Joe fell to the 30ish range once again today. Phelps Dodge got downgraded today, and its dividend yield is swelling daily now. Let's all hope HWP gets absolutely creamed - it's down 5% today while Dell jumps 5% on its way to its double top or possible head and shoulders. Stryker (SYK) is a Buffett-like company that is on a price downturn once again - here's hoping for sub-30. Today, Viking Office Products (VKNG) - a company that showed up on many of my own Buffettology screens down around 21 - is getting taken over for 30/share or so by Office Depot. So even if Buffett isn't buying them, market forces are on our side over time if we get the right price. Good Investing, Mike