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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: AGORA who wrote (1242)	3/9/1999 8:27:00 AM
From: yogi bare	Read Replies (1) \| Respond to of 2453

Agora, Last month you were going to investigate the role butterfat plays in the cost of producing a product and its impact on margins, any info? Butterfat has been below $1.40 for the past three months. Can't use this as an excuse for results of Dec 1 - Feb 28. Yogi....

To: AGORA who wrote (1242)	3/9/1999 6:12:00 PM
From: telecomguy	Read Replies (1) \| Respond to of 2453

It's hard to play the fundamental investment game with the Small Caps. It takes some due diligence, understanding of how good corporations are built (and it ain't overnight!) and lots of guts. But if the odds are played right, the rewards are enormous. My strategy is to spread out my investment over 7 to 10 Small Caps who all have the following criteria with the full knowledge that out of the 10 Small Caps, I will probably lose significant portion of my original investment in 5 companies, break even on 2 or 3 and hit home-runs with 2 or 3. Sort of like Venture Capital investment approach where they seed 100 companies knowing 70 will go bankrupt but the return on the remaining 30 will still generate 40% return on the overall portfolio. 1) High top line revenue growth 2) Good balance sheet with 0 debt and high level of cash 3) Stable mgmt who has substantial stake in the company and their personal networth tied into the share price 4) High growth market 5) Demonstrated ability to be consistently profitable There are few other criterias but the above list are the most important. Perhaps YF is not a prime candidate for criteria (4) & on the issue of profitability the last quarter was the ONLY quarter in their history where they missed out on earnings -- but it's not like they lost their shirt or anything! But they qualify very well in the first 3 criterias. Following this approach, I've done extremely well holding onto my stocks for an average period of 2 to 3 years. I have hit a couple of home runs in the high-tech sector where they have generated 800% and 700% return in less than 2 years. YF was also in this camp until the second half of 1998 but I actually held onto them because I felt so strongly about their real long-term potential. And I still believe that as nothing I can see has changed my perception of them (with the only caveat being the risk of personality conflict brought on by having co-chiefs running the company). We will see what the outcome will be to this interesing little company but my gut instinct tells me it will be in my portfolio until my retirement. As far as the comment that the Market is always right, I can only say I've outperformed Mr. Market every year for the past 7 years by substantial margin so either I've been lucky (and I am humble enough to admit that this is a disinct possibility) or Mr. Market is not all that smart as some people fervently believe.