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

To: Michael Burry who wrote (6273)	3/12/1999 12:26:00 PM
From: Ron Bower	Respond to of 78476

Mike, I agree on ELAMF and continue to hold. Since foreign equities are being discussed... I'll refrain from mentioning DSWLF at it's current price because it's been beat to death on this thread, but I will re-suggest HIHOF & HIHWF (warrants). It's a Hongkong based company listed on the Nasdaq now selling a little above net cash liquidity, about 1/2 BV, and a PE around 4. I won't go into the financials. The story: Highway was a metal stamping company that branched into cheap and disposable cameras. It's CEO is German and they did a lot of business there. In 1997, they bought out a bankrupt German clock company (well below value) that had been doing $50M in revs and moved the entire factory to China- writing off the costs to move (reflected in earnings). Their intent was to move out of supplying OEMs on metal stamping and concentrate on clocks and cameras. Outside revenue from metal stamping has fallen off, but they are showing excellent growth in the clocks and cameras. They just announced a deal that effectively acquires their competition in Germany. This company was doing $60M revs. It is likely that there will be a Q or two of poor earnings due to the acquisition, then earnings should substantially increase. The acquisition gives them two recognized, respected, and marketable brand names. Clocks and cheap cameras are not a glamour product, but this company has made some excellent moves and should become highly profitable starting in the Sep Q. I own stock and warrants. JMHO, Ron