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Biotech / Medical : RXSD Rexall Sundown

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To: Adelantado who wrote (300)12/3/1999 11:55:00 PM
From: RWReeves  Read Replies (1) of 327
 
From the most recent (11/29) 10-K:
Income and expense as a percentage of sales 1999, 1998, 1997

Gross profit.........56.6 57.9 60.9
Selling, general
and administrative
expenses.............40.9 38.0 42.3
------ ------ ------

Operating income.....15.7 19.9 18.6
Other income, net.......4 .8 1.4
------ ------ ------
Income before
income tax
provision............16.1 20.7 20.0

Sales going up, but gross margin declining. SG&A going up.
Income flat or declining. 12 mo. 1999 income is 88 cents a
share so you got a P/E of what, 12? Lower than the market
but without growth it isn't going to light anyone up.
That's why it drifts rather than plummets. Best thing
could happen is they get bought out for a nice multiple of
sales.

Buying only if it gets cheap enough.

RWR
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