Conference nyoss1::market_investing

UNISYS is a turn around situation.  Whether or not it succeeds in todays 
economy is still a little uncertain.  However, they have managed to get 
some of their problems under control and did make a profit last quarter for
the first time in awhile.  That prompted the stock to take off and it was
doing pretty good there for awhile until Dan Dorfman of USA Today wrote a
somewhat negative article about it about 2 weeks ago.  He cited some 
analyst that said the stock was over priced and selling way ahead of 
itself and was not worth more than $9.  That prompted the sell off from
11 down to 8 7/8.  It has rebounded somewhat since then and was at 10
earlier today.

However, whether or not it will be able to get itself together and continue
to have positve earnings report remains to be seen.  It was a good 
speculation at $4-5  but at $9-10, I am not so sure.  Any bad news could
make it very vulnerable to another selloff.

    Thanks for the reply. As of noon today Friday the 13th its at 9, up
    a quarter. I bought 600 shs at 4 to try to average out my previous
    holding of the stock at a much higher price. Naturally, when I saw
    how well it was doing the greed factor set in. Well I'm still holding
    at nine but will give it a while longer and take what profit I can.
    

    My approach to your situation would be to sell all 600 shares of
    Unysis now, unless you had solid evidence that Unysis had a high
    probability (>75%) of turning around and earning a share price of say
    12 or more by the end of 1992. My reasoning would be that (1) my third
    principle of investing in stocks is "don't be greedy" (first is "know
    what you're buying," second is "buy value")  (2) I believe there is
    a 50% risk of a significant market correction before June, in which
    I suspect Unysis is the type of stock that would be wounded more than
    others. 
    If there more upside to Unysis, you can take advantage of it through
    the shares you bought at the higher price. If not, those shares are a
    sunk cost anyway.
    Good Luck. COnsider my advice worth what you paid for + $.02
    John K

    re .3  Appreciate the advice. I'm still holding and Unisys closed
    yesterday at 10 1/8. Oh, what the hell, I'll hold a while longer.
                       vince

    For those that WSW with Louis Rukyser, he had a guest on the show (an
    computer analyst called Steve Milanovich from Morgan Stanley). This guy
    seemed to think (for what its worth) that IBM was in decline (although
    in the short term, he thought it might do okay 'caz of the new product
    cycle and all that). He also mentioned that Unisys had no where to go
    but down. He attributed the stocks rise to having a CPA running the
    company and the cost cutting that follows (I am para-pharsing his
    words). He implied that companies like IBM & Unisys were basically out
    of tune with the trends in the industry. He was cautious about DEC. The
    companies that he seemed to like are Amdhal, HP and  Cisco.

    My review of what he said regarding DEC is elsewhere.
    
    Where Milanovitch and I part company is that perhaps bringing in a CPA
    or financially-oriented CEO is better than one with marketing or
    engineering skills.
    
    Better for whom?
    
    The owners, the shareholders!
    
    UNISYS' position was irreversible even before the Burroughs/Sperry
    merger.
    
    UNISYS is viable only as a much smaller company.

    Unisys is up 1/2 at 10am today to 10 7/8. Thought I cought the top
    at 10 last week and sold half my holdings. The stock seems to have
    a strong base at around the 9 3/4 range. Any predictions? Why the
    good moves?
                                   vince
    

They announced better than expected earnings this morning.