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: Axel Gunderson who wrote (4840)	8/28/1998 2:22:00 PM
From: Michael Burry	Read Replies (2) \| Respond to of 78595

I'll just take cheap whatever the business. I think that Buffett companies have a long way to fall before they become attractive again as buys. They're just exiting "sell" range and entering "hold" range. Coke will fall to 60 and people will say cheap. Yeah, well, I thought it was overpriced at 50. So for now I'm taking my own advice and looking within my own portfolio. I've added to Deswell, Telebras, General Cigar and Midway. Deswell and Telebras are completely falling apart. Barring an unlikely dividend cut thanks to Deswell's cash hoard, it now yields over 10%. I also took new positions in Agouron, Incyte, and Tidewater. Agouron - a premier biotech - is getting killed with the rest of biotech and now sells for less than 1.5X trailing sales as they explode upward. Incyte I've already discussed. Tidewater is simply the most debt-free, free cash flow-rich boat/oil services operator. In a downturn invest in the biggest, right? There's insider buying and a stock buyback. For what it's not worth, now I have people telling me that the world is crashing and that people just don't understand. There were over 2 billion in outflows last week from stock funds. The headline in the local paper screamed "Meltdown!" and everyone is talking about the market crashing. I'm seeing people fleeing, which may do more technical damage, but I don't see the fundamentals in my stocks deteriorating as much as the change in market value would seem to warrant. I'm happy to pick up Brazil's telecomm system for 6 times earnings if people are willing to sell it to me. Mike

To: Axel Gunderson who wrote (4840)	8/28/1998 10:21:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78595

What's this? Am I one of the few actually buying these companies? TOY is a buy. You are seeing a couple of professional value investors - if you are diligent in following these things - coming public saying they are buying TOY at these prices. Great franchise, low price (pe), new management. I'm building my position back up again (started in '95, sold most in '97 and '98). Two years from now I think I can repeat with profitable sales again. Cooper Tire is a buy. Right, it's a mundane company. But it can and does make money. By my calculations and review, now is the time to start a position -- and I have, as I've posted here before. Not saying these are companies for anyone else to buy. Prices on some of these other companies look good also. Plenty of value investments out there now. Any time someone posts here on this thread and says something to the effect "my gut tells me"--- you can be sure there's a crossed wire between that someone's value analysis and their ability to start or maintain a position based on their mental processes. Get screwed up between head and heart. Lousy way to invest IMO. Senior.