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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (4389)	7/9/1998 12:49:00 AM
From: Michael Burry	Respond to of 78748

Re: NH, James thanks for the post. I am very much bullish on NH. It has churned twelve times its daily volume in the last two days without significant movement. There were some smart buyers among the panic sellers no doubt. I'm holding it and forgetting it, and will average down when and if it falls to 2/3 my purchase price. Good Investing, Mike

To: James Clarke who wrote (4389)	7/9/1998 10:14:00 AM
From: Stewart Whitman	Read Replies (1) \| Respond to of 78748

Jim, Thanks for your insight into NH. I was quite happy that this recent press release didn't "talk down" the stock like past quarterly releases seem to have. I was glad that the PR focused on NH's growth opportunities. Another reason for DE trading at a higher P/E than NH is due to its revenue composition. Last quarter, DE got 78% of its revenue from North America and was able to grow these revenues at 21%. It's non-North American revenue was actually down 1% last quarter. Contrast that to NH - 54% outside North America showing a year-to-year decline of 10%. The finance operations of Deere are also significantly larger portion of revenue. And, since I have received letters from J. Deere Credit offering lines of credit, I suspect that the finance operations of DE are significantly more diverse that NH. On a region-to-region or segment-to-segment comparison, NH compares very well to DE, its just the mix of regions and segments that are causing the problems. Of course, the regions showing growth will also change from year-to-year. NH's finance operations will grow up. As you say, don't know when it will happen, but it will happen. If you ask me which one's outlook is brighter, I think it is NH. Stew