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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (37464)	11/25/1998 10:41:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Chris, I like several CEFs. However, the currency bugaboo means Japan and Europe and a few countries in Asia. I doubt, even if things get better, that the Baht is going to whup the buck. Unfortunately, the ones with the strong currencies are not the cheapest. For example, I love Swiss Helvetia as a currency play and for its 18% discount. But the fund is up more than the US market. Ditto for the German CEFs. The two that I think have some turnaround potential are Taiwan and South Africa. Taiwan because they have no debt and South Africa because they are backed by gold and platinum and diamonds. Taiwan Equity is the best managed fund and sells at the highest discount, 22% (TYW). Southern Africa and New South Africa both have discounts in the 15-16% area, though I think SOA is the better fund. Morgan Stanley Africa has a 22% discount, but it seems a bit light in resources for my taste. I like SLB because it is the undisputed leader in drilling technology. It also has a great balance sheet and is the first in, last out supplier on every project. They are using their superior fnancial strength to buy businesses cheap during the downturn. They do pay a dividend, which stocks don't do much of any more. Any uptick in oil prices, or even stabilization, and this stock roars. In an upcycle to, say, $18 a barrel, I expect SLB to earn $4-6 a share. For more of an income play, I own Atlantic Richfield in my IRA and in my Cap App portfolio. I even recommend doing a buy and write on it with the Jan 2001 65 or 70 calls. This is a takeover story with a pristine balance sheet, a high dividend, and solid business. I haven't added a put for awhile. In fact, I allowed some first thirds to disappear without reloading after Nov expiration. I think we have a few more weeks of silliness and I want my powder really dry. MB