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

To: Paul Senior who wrote (5091)	10/2/1998 12:53:00 PM
From: Paul Senior	Read Replies (4) \| Respond to of 78519

"'Tis the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket." Cervantes. Well, I've got lots of baskets -g-. They keep shrinking in size though. Man, when a couple of stocks you own suddenly drop 4-5 points in a day, that's enough to make you want to empty those baskets, and every basket, real quick -g-. Still looks like a good day to buy stocks though: For me anyway, I've been buying early this morning: LHO (Yet again.) I see no reports by LHO of hurricane damage. Such prelim reports should have been out by now if there was material damage. Possibly some earnings loss though if people's travel plans are postponed or switched. If Jim Clarke recommends and holds this one, that's 50% of the battle for me. If Wallace is interested, I'm interested. Seems like all the hotel REITs are dropping today. At some point the recession, overbuilding, possible decreasing REVPAR - all the nasties are built into the prices of these stocks. I'll take LHO here and the LHO dividend and hope both the price and div. can be maintained. Conseco (CNC), adding to my small position. Very strong insider buys at this level. So I'll up my bet also. Consolidated Stores (CNS). Sold about 2/3 of my full position recently at higher prices. I'm going back in now (gingerly) to build it up. This merchandise consolidator (Big Stores, MacFrugal's, Kaybee stores)ought to do okay if we go into a recession. This stock is still expensive, but it generally (a killer word -g-) has sold for a much higher multiple than the current pe. Arrow (ARW). Initiating a position with a very small buy. I'm interested in a distributor when it's at or below book value. My favorite is Marshall (MI), but I think I'll wait a little longer there. Arrow is an $8B dollar electronic-component distributor which is obviously having its difficulties. But they provide a service that companies want, and ARW are big enough and capitalized well-enough that they have some clout in their markets. That's IMO. We'll see what happens a year or two from now. I say it will be back above an increasing book value. Again IMO. FWIW, Paul Senior