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

To: valueminded who wrote (4339)	6/24/1998 5:23:00 PM
From: James Clarke	Respond to of 78742

I don't consider insiders at Penobscot Shoe to be among the world's great investors, or they would have taken this thing private and liquidated it years ago. There are a million reasons for an insider to sell a stock. New house, kids going to college, estate planning. Its not a great sign, I know, and I would love to see some buying. I think the treasurer bought a big $3,000 worth last month. Whoop de do.

To: valueminded who wrote (4339)	6/24/1998 7:07:00 PM
From: James Clarke	Read Replies (2) \| Respond to of 78742

re: PSO insider selling, New Holland PSO: Insiders sold shares late in 1997. It was Mildred something or other, I assume she's an heir to the founding family. She lives off the shares and owns a big (like 20%) chunk of the company. Don't worry about her. The latest insider trade, the only one since sales turned up, was a tiny buy from the treasurer. And New Holland...I am responsible for this one institutionally, and am taking heat. Below $20 is absolutely nuts. Earnings estimates came down a few pennies today. So what? The company offers a FREE cash flow yield of about 12-13%. Find me another one of those that doesn't make a product that causes cancer. The company has analyst coverage, but apparently no real investor loyalty. There is absolutely no catalyst, but at some point it just becomes so cheap that you can't ignore it. (BTW, this is no 8 million market cap like Penobscot. New Holland is a stock that any institution could buy - the market cap is well into the billions.) I know this company well, and the valuation just boggles my mind. It looked ridiculously cheap at 25, and now its 19! The company hosts an analyst conference in two weeks - July 7th. If it doesn't go up at least 10% in the next week, I need to find another career.