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

To: James Clarke who wrote (5348)	11/27/1998 1:54:00 PM
From: Michael Burry	Read Replies (3) \| Respond to of 78574

Gabelli just picked up some shares of WHX. Of late he seems to have had a good grasp of what's up in the market. So why is he buying an overleveraged steel company coming off a nasty strike, with a history of bankruptcy to boot? Well, WHX is down below 11 again, and seems a much-changed stock than when it was first brought up here back in early 97. Scott Mc, if you're there, what's your opinion on the best way to play this one now, if you think there is a way? Other comments welcome. Also, the oilpatch is getting hit again. I forget who, but we have in the past had some pretty knowledgeable posters on the oilpatch show up here. On valuation measures like cash flow, decent dividend, high ROE+ low P/b and PSR, safety in the balance sheet, stock buyback support, and sector leadership, Tidewater stands out as a safe way to play any rebound. Anyone else looking at the sector now? News from OPEC and the majors seems terrible, but is it an opportunity for a 2-3 year hold? Mike

To: James Clarke who wrote (5348)	11/29/1998 9:51:00 PM
From: Tomato	Read Replies (2) \| Respond to of 78574

I was curious about your aversion to restaurant stocks. I remember Peter Lynch talking them up in Beating the Street, if I remember rightly. Buy something successful that can be cookie cuttered and watch it grow. Wendy's, KFC, Pizza Hut, etc. I think he invested his own money in Lonestar Steakhouse after he stopped managing Magellan. I guess on the negative side, ROE on restaurant stocks seem to be pretty low, if my cursory look at several stocks is representative of the group. And then there's the fickle nature of public tastes and fads to deal with. Anyway, you know a lot more than I do. If you could write a few words about the industry and if there are any exceptions to your dislike. Maybe you like McDonalds since WEB owns it? Thanks in advance.