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

To: James Clarke who wrote (4624)	8/6/1998 2:07:00 PM
From: valueminded	Read Replies (1) \| Respond to of 78666

James I guess its a question of semantics. I agree that USU is a great value at 14.25 I bought it there as well. It is even a better value at 9 at which case I will double my number of shares. I just do not view it as a full position. If I full is $10000 then I usually buy 1/2 position $5000 and then fill out if the price declines futher with no change in fundamentals. I am amazed that this market is trashing "value" portfolios. If you bought into NH at 19 or USU at 14.25 or others they are taking it solidly on the chin. Down about 15%. The amazing thing is if you bought internet or large "following stocks" with no or negative cash flows (such as Micron technologies) you would actually have done very well in the past 3 months. At this point, I see a number of stocks with very tempting cash flows that are just "hated" by the street. One in particular is OTL, a spinoff of GLK. Declining business with decent earnings, good cash flow, paying down their debt (about 10% of debt this quarter) Would like to hear your analysis of it if you have the time. Another one (which has been trashed) is CFWY. Good cash flow, decent earnings, Tisch (of value fame I presume) just filed 13d on it. My conclusion is that by and large, investors are paying no attention to fundamentals and are investing on a "well it went up yesterday" approach."