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

To: Madharry who wrote (7097)	5/9/1999 6:55:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78471

<<Jim, thanks for your response. It continues to gnaw at me that Morgan Stanley which I think was the lead investment banker could not wait to run away from this thing. It would seem that that would be a rash move, unless they really thought there was something materially wrong. I know if I were a CFO looking to take a company public Morgan Stanley would not be my first choice after this. Comments?>> It happens all the time. In fairness, I would point out that the Morgan Stanley analyst did more work than any of the other underwriters to make the stock understandable and visible to investors. He is getting the flak because he put his butt on the line in recommending the stock for the last 9 months. Anybody who has seen his report would understand that parts of it still look like a buy recommendation - this guy knows the valuation. I have no beef with him. (The other underwriter who downgraded a day later but put the day before close on his report as if he made his call at 11 1/2...him I have a problem with.) If I'm right about the value of this business, Wall Street just did me a huge favor in giving me the chance to add to my position at 10. If I'm wrong, then I'm going to lose money. Its that simple. In the long run, the economics are going to stand on their own. I have done my homework, and I still think I'm right. Not to say it won't take a while for the market price to reflect this - the stock now has no Wall Street sponsorship. Buffett said it over and over. Watch the business, not the stock. If the stock is weak but the business isn't, that's a good thing, not a bad thing. JJC