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Strategies & Market Trends : The Round Table: A work by the squares of the SNDK thread. -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (29)	3/9/1999 1:07:00 AM
From: Bill Zeman	Read Replies (1) \| Respond to of 194

Aus and Thread My strategy: 1. The company has got to be an almost sure lock for making tons of money in the future. This is an intangible thing that you just have to see using your common sense and business savvy. SNDK is a great example of this. Flash memory is almost sure to be used in one new miniature high tech product after another, and SNDK is almost sure to dominate flash. Practically a no-brainer. 2. I like to buy em cheap! Was it Lynch that said, "Wait till Mr. Market has a sale". SNDK was a screaming buy at 9, 7 and 5. Now I would hesitate to commit new money to it at all. As to what is cheap, PB and cash per share are my favorites as well as PE, although PE doesn't work to good with small caps like SNDK or companies right on the edge of being profitable. There are a lot of companies that fit the criteria for rule #1, but most of them are not cheap. You pay a high price for consensus. The trick is finding a company that is just suffering temporary set backs due to earnings fluctuations or something like that and then pounce on the stock when the market kills it. 3. I prefer long term investing. I will wait until a stock has doubled and then generally sell half my position. Then 1/2 again at next doubling, etc. If I have picked my stock right, then I don't have to worry about a stock going down. That's just Mr. Market giving me a chance to increase my position in the company. If the stock develops some serious problems that make rule #1 doubtful it is probably time to sell no matter where it is at. 1-2-3. As easy as ABC. Pick the company, buy it low, then sell for a profit. Easier said than done. I have lost a lot of money learning this and doubtless I am still not perfect, although lately I have been doing well. I am beating the S&P since 4/15/98, largely due to SNDK. SNDK was an easy pick when it was in single digits. Currently I am most enthusiastic about IDTC. I believe it is the next SNDK for me and I have invested some SNDK proceeds into it. IDTC is a strong up and coming telco with a sexy internet twist. They are growing fast and will grow, capturing more and more market share from the big 3. They are the leading provider of internet telephony and are about to spin off their internet division. Just Friday, it was trading in the 12's just barely above it's book value of 10 1/2. It popped up 18% today on anticipation of the IPO/spin off. It is a chance to get in on the internet while still on the ground floor. Here are links to my posts on the Value Investing thread introducing IDTC: Message 7700286 Message 7700497 To update the info on the switch IDT invented. It only costs one million dollars, 1/6 the costs of Alcatel's and Nortel's. It works! They have installed it and beta tested it on their own network! It will be ready for sale to others in 3 or 4 months! The best news is that Alcatel and Nortel are back logged and are 6 times more expensive! This is just one sideline of what is going on at IDT! 1. IDT is going to make alot of money! 2. I have bought IDTC at a low price near book value. 3. I will sell half my IDTC in the high 20's when I have doubled my money Bill Zeman

To: Ausdauer who wrote (29)	3/9/1999 10:53:00 PM
From: Paul Senior	Read Replies (4) \| Respond to of 194

Ausdaurer: re WFMI, others: I don't have good answers (or even answers) for all your questions. I believe WFMI will grow overall sales by increasing the number of stores they have. The stock will rise as they become more dominant (increase number of stores) in the upscale grocery store market. And this will happen (IMO). They've got a model that works (see Yahoo msgs)-- they seem to be doing good business; certainly that's so of all the stores I've visited. There is indeed a problem with this stock. I think it's WFMI's emphasis on health suppliments/vitamins/etc. Currently these are out of favor (see GNCI, for example). WFMI will get through this IMO, because their store reps are very knowledgeable and provide a valuable service to the customer (that's IMO-- and I've been wrong many, many times before.) I offer this stock as what I am buying as a long term investment. Perhaps it's not what you or others are looking for. Perhaps also, I myself, will not have the patience to await a better stock price for this company. Aside: certainly, there is NO stock... NO stock... that I see out there that was as good an investment as SNDK under 13. But again, for me, investing is a long term process- I don't expect every investment to be comparable to SNDK. Meanwhile, I'm interested in WFMI because I patronize them, and it's a business I can fool myself into thinking I can evaluate. You seem to be interested in revenue growth/store. Another stock I have bought at current prices is DANB. Dave & Buster's is growing revenues rapidly. And earnings are increasing. It's another you might look at. Did I pick up correctly that you live in the Chicago area? I'm buying Del Webb (WBB) which is the number 6 homebuilder. A play on demographics. They are successfully (that's IMO) bringing in an "active lifestyle" (-g-) community to the Chicago area. Also, I'm with the previous posters. I've bought IDTC too. I think it looks like a 'reasonable' internet and telephony bet. JMO, Paul.