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

To: LauA who wrote (6942)	4/25/1999 8:48:00 AM
From: Michael Peterson	Read Replies (2) \| Respond to of 78530

I think that CD & AMKR are both incredible buys. AMKR has a PE of 10 in an industry with a multiple of over 100. and it's the industry leader. This stock will easily go to 20 soon and longer term I believe the mid-30's. both have started moves to the upside on earnings news.

To: LauA who wrote (6942)	5/1/1999 7:01:00 PM
From: Allen Furlan	Respond to of 78530

RE Sero. Thanks for your thoughts on this stock. You identified a very real risk. I called company and they were very shareholder friendly, but of course could not comment on possibility of losing a contract. Per 10K there are four 5 year contracts. These contracts have some minimum purchase requirements. Bottom line is that as small shareholders we will remain in the dark and can only hope that the company manages to keep its customers happy. Also there is real risk that company can not continue to find a volume of donors which will keep their business cash flow positive. However I am encouraged that the company showed 5 years of stable positive earnings. Also as a positive is the rather difficult regulatory environment which I believe will act as a barrier to new competitors. My firm belief is that the stock will stay in trading range in the 5 to 7 area. But since the "Yahoos" are busy hyping the stock an opportunity exist to use this stock as a trading value stock using covered call options. I now have 3100 shares with May 5, June 7.5 and November 10 calls sold so as to bring my average purchase down to 4.5 dollars per share. Not much on this thread discussing covered call writing as a value approach, but I believe it is a valid approach.