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Technology Stocks : Kollmorgen (KOL)

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To: kblaine flaherty who wrote ()7/18/1997 9:53:00 PM
From: John Stichnoth   of 11
 
A lot has happened to the company since you started this orphan thread.
It's much more focused. They have three more quarters of good earnings.

They also have an interesting security: Convertible debentures, due
2009. Paying 8 3/4%. Selling a bit above par (101-102). If you're a
bit nervous about the continued run-up in the market in the short to medium
term (as I am), then these provide an alternative--especially if you
have a place to park the current earnings, such as an IRA.

At 16-17X earnings, with the growth they have demonstrated they can
sustain, their common looks good too. (Rule on buying convertibles:
Like the company first!)

js
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