why am I the only one to see the incredible value in ASEI???!!!

john clinton

USG after that the oils and housebuilders: COP, MRO, APC, KBH,CHK

CCRT is a big Tom Brown position, Second Curve Capital. Incidentally, "Success" magazine
(yes, I read it) has a good interview with Tom Brown. Apparently he worked for Julian
Robertson for a year or two in 2000 and then left to do Second Curve. Focuses on beaten
down alternative financial companies.

CCRT at ~8.5x 07 estimates with solid growth prospects.

I like the fact that Greenlight Capital has taken a large position in NEW. They are one of
the best value funds out there.

how about NEW? Very speculative, but could be a contrarian play on the whole scare about
a housing implosion. I'm in Silicon Valley, and prices are way too high for homes, but
there's a ton of pent up demand if the price is right. I don't hink home financing will
go away, and even if these guys cut their dividend in half, 10% not's a bad dividend! I'm
not in it yet, waiting for a more obvious bottom. it got a pop today, though.

I really can't think of any stocks that I think are very undervalued, and I usually can. I
wonder what that means about my overall macro feel.

Last edited on: 01-09-2007 11:25 am

Has anyone done much work on CBS? It has solid organic growth, is beginning to embrace
the new digital outdoor
signage era, has consistent returns of capital, and improving ROIC. It only trades at
about 9x cash flows which is below the industry average of around 12x. It's $31 right now
but I could see this at $36-38 by year's end.

Mike, I agree with you about dialuip - its a declining business. But, UNTD is migrating to
the social networking business. Classmates.com is the 4th largest social network out there
and already accounts for a significnt amnt of UNTD's earnings and all of its growth. Not
to mention that UNTD only trades at 5x cash flows. SO lets say you do an LBO of UNTD and
borrow 100% of the purchase price. You can pay down your debt and still make money, even
if the dialup side continues to decline AND you forget about your growing social
networking biz. Thats why I think UNTD is a buy.

On the large cap side, I like JCP at just 7x earnings and JNJ hanging out around 8x.

Mike--

I'm with you on some of these large cap stocks. I'd look for the great largecaps that are
trading less than the P/E of the S&P 500 as a whole. I don't have my BusinessWeek in
front of me, but I think that's about 17.8 trailing and 15.4 forward. A quick screen
shows some nice stocks in there, including Reynolds, Bank of America, and some oil stocks.

David