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

To: Daniel Chisholm who wrote (6079)	2/21/1999 6:39:00 PM
From: chalu2	Respond to of 78505

I'm not sure it's inefficiency that's the problem. The most profitable business model has always been razor/razorblade--i.e., make a product, mass produce it, and then sell it widely with little personal involvement. Personal services, "made to spec", limited market companies, and companies in industries with competitive bidding have steep mountains to climb to attain healthy margins. Their usual path is oligopoly and overpricing, and this path is not always open to them.

To: Daniel Chisholm who wrote (6079)	2/21/1999 10:19:00 PM
From: Bob Rudd	Read Replies (2) \| Respond to of 78505

LWN: The key question here is - Have investors over-reacted to the problems and provided an opportunity for value investors to step in and accomodate "Mr. Market" when he's at his most pessimistic. At $30 to $40 a share LWN was clearly not attractive to folks on this board. But at $2 a share with book over $18, price/sales less than 1/10 of competitors, and guys like Gabelli in at a multiple of current prices...it might be worth a look.