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

To: James Clarke who wrote (5049)	9/25/1998 8:21:00 AM
From: Wright Sullivan	Respond to of 78476

James- Thanks for the update on JOE. You present a very logical case, as usual. I am impressed by management's moves over the last year-and-a-half and from that point of view, see the value increasing. However, you are dead right about where they are in the loved/ignored cycle. I do not have any of your familiarity with REIT alternatives, but am buying JOE to hold for 10 or 20 years in an IRA. -Wright

To: James Clarke who wrote (5049)	9/25/1998 12:34:00 PM
From: Terrapin	Respond to of 78476

Hi James, This is slightly off-topic but only slightly. First, do you think the speech by Greenspan was influenced by the near default of Long-Term Capital? On the face of it LTC's troubles hint at a possibly much larger problem with foreign and domestic markets. Could this have been the final shove to induce a rate cut? Second, could you briefly explain how the bail-out occurred? I've heard people say that it was a "Fed bailout" but it appears that the only people infusing money are the very banks who invested in the fund. So they were protecting their own money and in return received substantial control over its future use. I'm not sure where tax-payer money was used. I realize you work at a completely different type of investment firm but I value your opinion and felt it might be germaine to the overall market condition. Afterall, I moved into a high cash position right alongside you back when things were still moving up and couldn't be more pleased. And for Paul's question about whether people are buying anything the answer is "kinda" <g>. I placed a bunch of GTC orders for a few companies (DSWLF, NH, CSE, CRUS, OMPT, X,...) but the only one that got filled was USU for $14. Not all of them are value stocks, of course, but what the hell <g>! Thanks, John

To: James Clarke who wrote (5049)	9/25/1998 12:40:00 PM
From: Terrapin	Respond to of 78476

Oh, I almost forgot! What are your feelings on the "tax-loss selling" phenomena? Are we in it now or will October be a killer? Personally, I'm not in a rush to buy anything as so much seems to be trending down right now. Thanks, John

To: James Clarke who wrote (5049)	9/25/1998 1:27:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78476

Jim, I guess I bought your NH stock today. I couldn't resist a price under $10. Selling at book value, 20% or so of sales, over 5.5% dividend, 4 X last years earnings and 5 X this. Stock is selling as if they were losing money, but based on today's news they are far from it. Also far more of their costs should be denominated in other than dollars than US companies, so their competitive position improves relative to their competitors with the strong dollar. I look at it at these levels as giving a superior current income return to Treasuries but will be over $20 in the next recovery in 2-5 years. Also note Fiat has stepped up to the plate to buy $250,000,000 stock, which is 1/2 what they do not own. What am I missing?