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

To: Michael Burry who wrote (1085)	2/26/1999 9:52:00 PM
From: Shane M	Respond to of 4691

Mike, JMED after a very quick first look. 1) Wow, look at those margins! 2) a lot of the income over the past 3 years has been non-recurring. If I look at continuing income I get a PE of around 35. 3) a large portion of the book value growth took place between 96 and 95. This appears to be a one time aberration, so special consideration will likely need to be given in estimating future book value growth rates. Do you think 15 to 20% seems reasonable? Thanks for mentioning. I will look further. Shane

To: Michael Burry who wrote (1085)	2/27/1999 12:17:00 PM
From: Sr K	Respond to of 4691

JMED was one of my best purchases, 2,000 at $6.625 January 17, 1995 and again at $8.75 April 13, 1995 two 3:2's ago. I sold the following January, too soon, but couldn't resist the $102,000 gain on a $31,046 investment. Didn't realize the plan they had to buy castoffs (they had just presented at a RH conference - which was an unusual step for them), and was motivated by the impending secondary (an earlier announced secondary had killed the stock from 13-14 to about 11, and then been canceled - I had lost $1,700 or so at that time, bailing when the stock cracked 12). Any mention of a Buffett-type stock IMO has to include management, and Dennis and Judy were very accessible and straightforward. After I made the first buy, I called Dennis and he told me there had been an overhang of 40,000 shares from some fund, but they had completed their exit. The stock bottomed that day at $6.00 and closed at $6.75 and never looked back. I also note that Dennis sold Call options on 300,000 of his shares at $40, which expired worthless in March 1998. Cool. For those of you looking for older data, the former name was Jones Medical Industries, Inc. The name change sort of reminds me of Corning dropping the "Glass Works" but keeping the symbol GLW. Maybe they've reserved JPH and plan a move to the NYSE. And, Michael, I wish you wouldn't have used the phrase "rip-off prices" - you may just cost JMED $$$ on their next deals.

To: Michael Burry who wrote (1085)	3/4/1999 11:02:00 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 4691

Mike, I've been curious about something for a long time but haven't had a chance to do the research. WEB often talks about "look thru" earnings. I was wondering what the "look thru" ROE is for BRKA/B. In other words, if we removed the value of all the equity holdings and deferred taxes from the balance sheet and substituted his share of look thru "tangible equity" in those holdings, what would the tangible book value of BRKA be and what would the "look thru" ROE be? I think it's an interesting question. If anyone knows, please let me know too. If not, when I get around to it I'll post it here. Wayne Crimi