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

To: James Clarke who wrote (7289)	5/23/1999 9:26:00 AM
From: Dan Meleney	Read Replies (1) \| Respond to of 78520

Where do you see Boeing now? I bought BA at about 34, so I'm interested in why you thought it was time to get out at 33. I suspect it is from a difference in objectives. I bought it for my buy-and-hold-forever portfolio. I worked a while at the Douglas Aircraft plant of McDonnell Douglas about 16 years ago. I think there are still huge savings to be made by reducing costs. The BA CFO impresses me in what she's been able to accomplish so far and how much room for improvement remains at BA. Note, so you know my track record here, my only other airline pick, AirTran/ValueJet, was one of my worst ever. Dan

To: James Clarke who wrote (7289)	5/23/1999 9:43:00 AM
From: Madharry	Read Replies (1) \| Respond to of 78520

Jim, I just took a quick look at LKI and I think it is more risky than most because the company's net worth is concentrated in its rough and polished diamond inventories. How conservative is this valuation and how does it compare with current market prices? Do they mark to market or to cost basis. What has happened to wholesale diamond prices over the past three years?

To: James Clarke who wrote (7289)	5/23/1999 12:56:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78520

Jim, there are different issues on interest rates for the stock market: Is a rise in rates due to tighter money and impending materially higher inflation, or due to fears of more inflation that largely won't be realized? If the former, then it could have a lasting impact on both the stock market and economy. However, I doubt it because of lack of notable strength outside the US. If it is merely due to fears of higher inflation, it will likely only have a temporarily adverse impact on the stock market, with those fears getting all the blame for a correction that would have happened anyway. At this level, interest rates are not a material cost of doing business for most companies, except for financial institutions. Therefore, I would conclude that because of the complacency the market is quite exposed to a correction, but not a serious one. For me that means being very careful about new investments and taking profits on any large advance in a stock, thereby gradually reducing exposure, but no wholesale liquidation.

To: James Clarke who wrote (7289)	5/23/1999 1:05:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78520

Jim, you were willing to by CYM at a cyclical low. Would you be willing to do same with Homestake Mining (HM). I am considering it. I thought and think CYM is a cigarbutt. But I also thought they were at a very low price in both the stock and business cycle - especially the stock cycle. So I bought- having no positive outlook for the industry and no idea of what or when the perception of CYM might change to cause the stock price to rise. Now seems like HM is similar. Mining co. with a discredited metal (England unloading lots of her hoard). But at some point the gold market will absorb, and at some point there might be demand increases for gold. The stock of HM is at at least a 10-year low. Again, I do not understand or like the business, I don't see when or how HM or its peers will recover, and it certainly looks like HM stock will not recover (can drop much more)... but.... historically - over the past 10 years or more... this stock has traded above 10 (up from 8 now). So I am thinking, again like CYM, they are not going out of business (just a guess), they have assets, I don't see any insider selling....and sometime in the next 2 years HM will be 50% higher (at 12) than today. Do you, or anyone else have a comment?