To: Paul Senior who wrote (4325 ) 6/24/1998 1:06:00 PM From: Michael Burry Read Replies (3) | Respond to
Congrats Paul. There goes Methode, up significantly on already-triple volume on no news. Of course it's still on my "buy soon" list - other than Ron's observations, I couldn't find a reason to invest quickly enough. Meanwhile, the stocks in my portfolio have taken turns hemorrhaging, and it's awfully hard to figure which ones are at risk cuz they all seem so darn cheap already. With an average PE of 9.6 and an avg yield of 2.3%, PSO is my high-PE play <g>. I still like all the stocks in my sealpoint portfolio, which is up-to-date except for BHP, which I sold (at its short-term bottom) to make room for PSO. They've all been brought up here before, but especially New Holland and Deswell seem inexplicably cheap. The Deswell thread here is the best source of info on the company anywhere, and Ron's recent post about his talk with the CEO may shed some light on the weakness, which is overdone IMO. As I've said before, I've talked with the CEO as well, and he is very seriously and successfully running the company. He seems to regard the stock market volatility as extraneous and somewhat humorous. Yes, the stock's down over 30% in recent months, but last time this happened, he told me "long-term investors should regard it as a buying opportunity." The dividend isn't quarterly, but it has been generous. New Holland stock is no doubt suffering due to the emerging market weakness and the threat of a world recession, but and as with Deswell there's a decent dividend while you wait. And that low PE is real - the company is flush with true earnings and cash-generating ability, even now in the face of the last 9 months of emerging market turmoil. Jim Clarke knows the company better than me (I believe he's had access to management in the past), so maybe he can comment on the sub-$20 price.
