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MUTUAL SERIES FUNDS'
MICHAEL PRICE ET AL.
(continued from preceding
page)
And Chase isn't exactly micro-cap, either.
Price: And maybe some of you are aware we bought a
few shares in Chase a year
and a half ago. Ray Garea said,
"Chase is too cheap at $35. It's worth $65. So it fits Mutual."
So Ray bought 11 million shares of Chase. The stock
today is at $84. We still own a lot of stock. And that's a
big cap stock. So there's nothing wrong with big cap or
little cap. If we're walking down the street and there's a
$20 bill lying on the street, we're going to bend over and
pick it up - big cap, little cap, we don't care. We want to
make money for the shareholders.
WE FIND POCKETS OF OPPORTUNITY....
Despite a Dow near 6,000, we're finding things every day. We think Horizon Healthcare is cheap. It's getting late in the day for financial stocks. But Chase....
Page 7 of 28
Shareholder: I understand that you basically look at
one investment at a time... But would you give us your
comment on the general market, the huge flows of new
money going in and what you foresee over the next few years?
Price: We find pockets of opportunity in groups that
haven't performed well. So the overall market might be
making new highs at 6,000. But inside that market, you've
got HMOs that got destroyed in July.
You've got companies here and there with weak
earnings in a quarter that surprise the Street - and the
stock drops ... from $45 to $15. That's the shift from the
growth stock guys to the asset guys - the value guys.
When a stock goes from $45 to $15 on weak earnings,
what you're seeing is the growth guys getting out and the
value guys buying it - because the value is probably $20.
So we find things every day.
Ray Garea: HMOs continue to be very cheap. We
continue to believe that within the health care sector they
are probably best positioned to grow. But they're not for
the faint of heart. They're very volatile. And you have to
pay attention. But we continue to find the area attractive.
Shareholder: Do you still consider
Horizon Healthcare to be a plus?
Price: Yeah. We own the stock. We think it's cheap.
In fact, I'm going to see 'em Monday in Albuquerque. And
we're trying to make it not cheap. We're trying to get it up.
Garea: ...In terms of [other] things [we've done] lately,
we've made a lot of money in the financial sector in a
variety of ways. But I think it's getting late in the day.
The risk/reward is changing a bit in that arena.
We still own a very large position in Chase. It continues
to be one of the cheapest banks out there, and one whose
prospects are certainly above average. We've also done a
lot of other companies....
15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28
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