I agree with Swampwalker, typically the cutouts, whether they are holes or saw marks on the edges, were used to denote overstocks that would be sold by stores at reduced prices and were a way the stores could tell that, if someone returned one.
If you buying LPs only for the music, cutouts are in my experience a good way to get somewhat cheaper vinyl. Keep in mind though that cutouts typically command a lower price as compared to the same LP in same condition noncutout - good if you are buying and not so good if you are selling. Why? 1) Because some people are collecting the cover as well as the vinyl and holes or saw marks can detract from the look and 2) albums typically became cutouts at the end of their popularity which translates to later pressings of the album which may denote larger press runs per master which in turn may denote lower quality. I have not found that to be an audible fact with reasonable care of the albums and a good player.
