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Subject:  The sun will come up tomorrow Date:  10/8/2008  10:35 PM
Author:  TMFOtter Number:  377 of 5166

Hi folks --

I've been saying for a few days that we've been seeing evidence of massive institutional selling in some of our companies. No one puts out a press release, of course, but the amount of puking out of stocks has been incredible.

We hope you enjoy the issue tomorrow -- we've put a lot of thought into the message and the companies we're recommending. Frankly, I'm ecstatic about the prices we're being offered.

Thanks for sticking with us. I can't tell you how much it means to come onto these boards to find discussion that is rational.

A few things for your enjoyment/edification:

Longleaf Partners put out an excellent conference call today. Pay close attention to what they have to say about hedge funds. This is happening to so many companies, especially overseas. So many positions simply do not make sense to me. (Cemex gets mentioned).

Also, Ken Heebner was on CNBC this afternoon. I don't invest like he does, but I recognize that he is extraordinarily smart and quite savvy.

Heebner notes that some of the market's collapse has to do with a massive liquidation of hedge funds, with other funds being forced to sell as well to de-lever. He notes that this has a reflexive impact, as it increases the level of fear. He thinks that the pressure can only last for a few days or weeks as the liquidations slow.

He also says that he's finding unbelievable bargains (vouch), and particularly likes Mosaic, trading at a P/E of 3. I think he's depending too much on a peak earnings number, but regardless it's pretty darn cheap.

Hang in there. The sun will, in fact, come up tomorrow.

Foolish best-
Bill Mann
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