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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (886)	10/13/1998 7:08:00 PM
From: Freedom Fighter	Respond to of 1722

Berney, >>Granted, fundamentally it looks great. It gets an FA score of 10 in my system, has a PE of 10.3, a historical PE of 13.6, a 5-year average ROE of 17.6, and a projected growth rate of 12.5. From my perspective, the stock is reacting to a 98/99 growth rate of only 6.8%. Ah! the fly in the jam.<< The slowdown is related to some changes in the rules in California last year that caused an above average increase that could not be duplicated this year. The underlying growth on a normalized basis (excluding these one timers like surcharges) is very impressive for a company selling at around 10X earnings with an above average return on equity. >>But then, the chart looks like a lot of financial stocks. Boy, it has been a blood bath.<< The banks and brokers are piling up losses with potentially significantly more losses to come. This is auto insurance. No derivatives, no hedge funds, no begging at the IMF's door here. I think all the financials have been getting whipped without any thought. I also like the 34.2% holding by the CEO and 51.5% insiders holding, in combination with a significant buyback. Sounds like they love it at this price!!

To: Berney who wrote (886)	10/13/1998 8:02:00 PM
From: Freedom Fighter	Respond to of 1722

Porc, >>On the op-ed page of the Oct. 13 edition of the Wall Street Journal, Milton Friedman wrote a piece entitled "Markets to the Rescue." It was absolutely the best explanation of why the IMF is such a problem institution and why it causes so much damage. I often disagree with Milton Friedman, but in this particular case, he has said very eloquently why the world is worse off due to the IMF. I encourage everyone to read it.<< Bill Fleckenstein I hope you read this article. It was really terrific. In fact, you could have thought that Milton Friedman was an Austrian economist. The only disappointment in it for me was that he did not address any of the weaknesses in the US dollar standard monetary system we have at present. Other than that your favorite economist is also one of mine as of today!!!