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

To: Michael Burry who wrote (6842)	4/19/1999 11:49:00 AM
From: Paul Senior	Read Replies (3) \| Respond to of 78525

Mike, based on the Mike Burry "Barron's Effect" phenomenon, I am selling a chunk of Chicago Title (CTZ) today (Monday am). (I HOPE I can buy it back LOWER- I hope that's part of the effect -g-). FWIW, I placing some of the proceeds into Federal Signal(FSS). FSS: I often see this stock show up on value screens. I've always passed on it. Dull, mundane- fire trucks, warning lights, etc-- but profitable (-g-) company, I never could understand why some pundits would recommend it. I finally succumbed to the song sung by Bob Perkins of Berger Small Cap fund, interviewed in Morningstar 2/12/99. "(They are) largely a non-cyclical business, because it's dependent on municipalities keeping their fleets current. If you look at the long-term record, you'd think it was Coke, because it had grown very, very consistently at 12-15%. This year was the exception...But (the) problem is going away and we're getting paid 3% while we wait... "We're paying 12 times what we think is secular growth at 12-15%." The stock is up 3-4 points or so from its low (what industrial stock hasn't been bumped up in the past week?). Looks to me that roughly, stock has traded in a 20-25 range since about '96. If stock market's past week's performance continues, FSS has a chance for an upside breakout. Guess I'd just rather be in now, than wait to see if the stock retraces to its low. (Getting sucked into the euphoria-- uh oh -g-) Dividends, sales increasing every year since '93 (don't know of an internet source that goes back earlier); psr and p/bv look at low range of past few years. FWIW, Paul