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

To: Shane M who wrote (5008)	9/17/1998 1:40:00 AM
From: jeffbas	Respond to of 78476

On RDHS, you would think dropping food commodity prices would be good for these companies. You might also want to look at EATS in your review, which I own. They appear to be similar-sized companies. I believe EATS shows food costs as a percent of sales in its SEC filings, which is not a direct measure. The statistically cheapest stock that I have seen in years was last week when electronic distributor NUHC at 3 1/2 was briefly selling at 70% of the excess of current assets over ALL liabilities. Making $.10 per quarter, no inventory issues, out of favor industry, 10% or so of $250 million sales. Unfortunately, I thought it was a good buy at book value of $6 many months ago. My point is not to recommend it now, back above $4, but to point out that I believe that stocks generally should carry much higher risk premiums now and there may be many companies gradually joining them in valuation as more and more issues fall out of favor. I am really worried that this selloff will turn into a 1973-74 type slaughter.