Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bob Rudd who wrote (6912)	4/23/1999 12:42:00 AM
From: Michael Burry	Respond to of 78523

The way I look at it, the company is growing, is profitable, with good cash flow. TMF Boring argues with me, saying that the cash flow is poor. Don't get it. I see them expanding aggressively, growing revenues and the bottom line with good margins given the business, and all out of cash flow. This tells me they can keep expanding out of cash flow. No doubt the superstores are where that cash flow comes from. Walden's, well... But hey if it had no warts it wouldn't have fallen 65%. I think by focusing on these warts, investors will overlook the value here. The co and the business are not perfect, but they are now undervalued. Re: mall leases, IMO these should probably be capitalized and thought of as a form of debt. But that's another wart. In spite of these things the company continues to grow its top and bottom lines, and continues to expand. IMO people are missing the forest for the trees. Retailing isn't so hard to figure out. I bought Finish Line when everyone thought hey it isn't as good as Just For Feet, so why buy? Well, heck, that's not the point of value investing. Finish Line still could double to fair value, and it did. Mike