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

To: Wallace Rivers who wrote (7114)	5/11/1999 8:34:00 AM
From: jeffbas	Read Replies (1) \| Respond to of 78462

I agree with everything that you said, but IF the business is never going to get better, and may get worse then the traditional idea of value really has to be pushed to include the cost of reducing capacity in the industry, etc. Cards will never be "buggy whips" but the value investors and takeover artists in the buggy whip business got burned.

To: Wallace Rivers who wrote (7114)	5/11/1999 9:49:00 PM
From: Bob Rudd	Read Replies (3) \| Respond to of 78462

GIGB: Agree with Jeffrey Bash on this... a model may be what occurred to encyclopedia makers when sets came out on CD...even WEB admitted World Book got toasted. In addition to Microsoft in partnership with Hallmark, American Greetings is offering CD based product and several free net-based greetings are available. I've used these products and they're not just cheaper, they're more personal since you can customize to fit the individual situation. Valuation based on historical parameters works great when the environment is stable, but when the game changes, this can get you in @ mid point of a long slide. The game, IMO, has changed. The general theme here is that when looking at ANY investment, one must ask: What is the net doing to this business model? and, What will the net do to it in 5 years when virtually everybody with money to spend has access at bandwidths that will allow far more content-rich products to be delivered at lower cost than today? bob