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

To: Ron Bower who wrote (4765)	8/23/1998 12:58:00 AM
From: peter michaelson	Respond to of 78615

Ron: >"Before the LBO's hit the market in the 1980's, there were many, many small (i.e. not huge) companies at PE's of 7x and under - and they had been there for quite a while. Some had good growth,non-cyclical good balance sheets, good management, et cetera"< And what has happened to the stock of those companies since then? Not sure what you are driving at, but a literal answer - an opinion really - is that the companies were acquired, went out of business or their stock price went way up. My point was that those kind of low values could be seen again and could stick around for a long time. The point started when Mike seemed very enthusiastic about buying low multiple businesses quickly, before the opportunity disappears. The tone of his statement, as I perceived it, concerned me. I'm sure that the chances are 50/50 I'm right. <g> In any case, the horse is dead now - I've made my point six or seven times and even I'm getting bored of it. Best to all, peter