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

To: Paul Senior who wrote (4665)	8/16/1998 6:09:00 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78644

K I looked at this a a short candidate for quite awhile due to increasing competition from both branded and generics. I didn't short it because this is a market than can kill you if it falls in love with something - look at KO. Nevertheless, I don't find Kellogg a great value even at these prices. Competitive pressures will continue to force them to choose between losing market share or lowering margins. - There are better buys out there after the recent sell off. Be well, Bob

To: Paul Senior who wrote (4665)	8/16/1998 7:30:00 PM
From: Investor2	Respond to of 78644

Re: "I take it that these are stocks you already own- and maybe for many years, if not decades." Yes, I've been dollar-cost averaging into most of them (along with others) for a LONGGG time. Every time the dividend rate approaches historic highs and/or the P/E historic lows, I throw a little more money into them. RE: "BT... Now that could work at current price. Earnings increasing with dividends as back up support. I'll have to look further." Yes, BT's got a nice dividend, relatively speaking. Of course, I bought when the yield was 7% to 9% in the mid- to late-1970's, and 4% to 6% in the early 1980's. The yield dropped down to 3% in 1986/87, before the crash, and then jumped back to about 6% in the late 80's and early 90's. Recenly, the yield has been in the 3% range, but the 30% drop in the stock price bumped it up to about 4%. Given the fact that inflation is 1.5%, and the S&P 500 yields about 1.5%, 4% isn't too bad. Best wishes, I2