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

To: John Stichnoth who wrote (6124)	2/26/1999 11:09:00 AM
From: Michael Burry	Respond to of 78523

How about Jones Pharma (JMED)? It's my pick of the month over on my website. The company is an emerging pharma that has 18 straight years of record profits and has been growing its equity at a 36% compound annual rate for the last 10 years at least. Now at a PE of 22 on continuing operations' EPS. An asset sale and cash flow have swelled their cash hoard to about 15% of the market cap (and there is no such thing as a burn-rate with this co). They acquire underpromoted, approved drugs from big pharma and market the heck out of them - no big, ongoing R&D expense. Management has been showing it still has the touch with Levoxyl, and IMO this one fits the profile of a Buffett company. Long-term holders have been rewarded, but given the nature of the industry, the company IMO attracts a lot of the wrong kind of investor, producing extended trading ranges. We've been in one now for several years, and are approaching the lower end of it. Good investing, Mike (my web site is at valuestocks.net)