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

To: Michael Burry who wrote (4852)	8/28/1998 11:54:00 PM
From: Bob Rudd	Respond to of 79000

Y2k impact on the investor: Speaking generally, y2k remediation hits the income and cash flow as expenses, as would after the fact litigation. Downtime hits earnings directly. Nothing I've said is directly related to Telebras. I haven't studied the co and you may be completely correct that this issue is more than discounted in the price. The thrust of my comments is that for the next 2 years y2k has the potential to bite the unwary investor and when you see pricing that looks too good to be true, y2k could be an underlying reason. Submerging market stocks are sometimes priced based on different perspectives than in the US. It's tough to find reliable data on stuff like earnings, book value, cash flows. Y2k estimates are even further down the line. Creative accounting is often a national sport. Stuff goes up just because it's going up - wait a minute, maybe it's more like the US than I thought. Sorry to ramble, just thought this was an issue to consider. Respectfully, Bob

To: Michael Burry who wrote (4852)	8/29/1998 12:13:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 79000

Everybody should check out Michael Burry's article on Microsoft Investor on USEC (USU). Its a good refresher on a stock we all vented on a month ago. This stock is holding up surprisingly well in this bear market for smaller stocks and cyclicals. Jim

To: Michael Burry who wrote (4852)	8/29/1998 12:05:00 PM
From: cfimx	Read Replies (2) \| Respond to of 79000

i am simply trying to point out that my hero and yours wouldn't touch this (even if it were a great business and a US based company) and wouldn't recommend we do either, even at the used cigar butt price. Why? Because there is a massive "potential" off balance sheet contingency that there is no way of really knowing the outcome of. You're actually saying you don't know, don't care, and are compensated for the risk. You basically trust them, without really KNOWING them.