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

To: Paul Senior who wrote (5140)	10/11/1998 12:12:00 AM
From: jeffbas	Respond to of 78915

Paul, two comments. My comments on banks and insurance companies were meant to say that I believe that most people do not understand the risks inherent in the capital structures of these companies. What that means to me is that most of the time, but not all of the time, I believe the pricing of the stocks does not carry a high enough risk factor. On LHO, I would have bought it under $8 if I had been paying attention. However, I think the price decline has occurred for all the reasons you stated, plus one other. I assume they purchased all or most of their properties at the peak of a "feel good" financial environment. There may also be a factor in the pricing to reflect increased risk that because of the leverage the market value of the properties might decline to a point where the real book value was materially reduced.

To: Paul Senior who wrote (5140)	10/12/1998 11:16:00 AM
From: Bob Rudd	Read Replies (1) \| Respond to of 78915

Take a look at FSACF selling below book and below cash.. biz.yahoo.com An analysis prior to fall: raydirks.com Their web site firstsouthafrica.com If this looks interesting, suggest reading yahoo message board..some pretty savvy comments there..unlike many yahoo boards. Disclosure - I'm long this. It's complex and risky..combining interesting financial structure with emerging market. Just came out with 10k.

To: Paul Senior who wrote (5140)	10/15/1998 11:27:00 PM
From: Shane M	Read Replies (3) \| Respond to of 78915

Paul, I've been interested in OfficeMax OMX for quite a while, and the stock has fallen into the $6/shr range now. They recently reported that earnings are going to be below analyst expectations, but this still should be $0.25/shr or so for the quarter. quicken.excite.com Primary competitors, Staples SPLS and Office Depot ODP. The main difference in the numbers I can see between OMX and the two above is that OMX has a considerably lower ROE, but I think that may be due to OMX's not carrying the debt load that SPLS and ODP have elected to carry. Margins are comparable for all, and Sales/shr at OMX are growing at around 19% a yr. I can't figure out why the market is pricing OMX at such a discount to SPLS and ODP. I haven't been to a Staples store, but have been to both ODP and OMX and really don't see much of a difference at all. Does this one interest you, and do you have any insight. I think I'm going to open a small position tommorrow and see what happens. I think some of the thread will find OMX an interesting situation, but I apologize if it doesn't fit the normal value criterion. Would appreciate any comments. Shane