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

To: Ron Bower who wrote (5168)	10/20/1998 1:09:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78817

Hi Ron. Well, it's hard to argue with those figures. Your comparison makes a good point. Or maybe many good points. On my behalf I want to bring out these figures: p/bv: .53 (ELAMF) vs. 1.1 (DSWLF) psr: .25 (ELAMF) vs. .73 (DSWLF) I also think that DSWLF having a book value of $8.00/sh and reporting earnings of $2.40 for a ROE of 40%+ is utterly suspicious. Chinese smoke and mirrors to me. I'll have to defer to you experts on the company and its industry, but to me, they are a manufacturer or assembler with the same equipment and same low paid people as any of their competitors. No competitive advantage (other than some good business connections). I just don't see how they can sustain, let alone have, this kind of ROE. I think with DSWLF, the bet now would be a dead cat bounce from these low stock price levels. Whereas for ELAMF, I can see the ROE at least improving to maybe 10-12% and the stock going up to at least book value. (They've just announced an alliance with GE, as you know, and this may accelerate the improvement.) But as I say, these are my opinions, and I've been wrong many,many times before. Additionally, these are both small cap foreign companies. No one (who is not intimately familiar with the culture, the business, and the management of such companies) should ever make such companies a core holding in their portfolios. To do otherwise is very, very risky. That again is IMO. And that is what is stopping me from adding even more (ELAMF) to my own account. Paul.