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Technology Stocks : Stock Swap
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To: Andrew Vance who wrote ()12/13/1997 9:52:00 AM
From: John Westman  Read Replies (2) of 17305
 
AV, Earlier in the week you asked for some more info on Steelcase coming public. The sale will represent about 10 to 15% of the common which is privately held. Employees are being given 10 shares each and the opportunity to purchase 100 shares prior to the public offering. I've heard the price is expected to be low to mid 20s. (The existing shares which become available rarely... are rumored to have sold for around $8,000).

To get a feel for the recent history of the industry check Herman Miller
MLHR... after a slow periord from 1990, the industry took off in 95.
Steelcase has sales of 1.36 billion for the 6 months ending August 97 with a net of 113 million - a 68% increase over last year and compared to 123 milolion for all of 96. They have no long term debt, reserves of about 302 million and paid Haworth 211.5 million in 96 to settle a patent dispute.

Steelcase is based here in Grand Rapids, MI (office furniture capitol of the world) and has been known for its innovative management. All employee compensation is tied to performance with performance bonsuses reprepresenting a significant portion of every employees total income for the year.

In my view, this is a dynamite company and a tremendous long term investment. These guys are the world leaders... but don't forget they are coming off a big year for the industry (BIFMA estimates growth for the industry in 98 will be 6%) and their competitors are not the type to roll over a play dead. Herman Miller has become very aggressive in recent years. And, this is a cyclical business. Take the MLHR graph back out to 90 and you'll see what I mean.

Hopefully the prospectus will be much more helpful. What it won't portray, however, is the employee climate.. which in this community appears to be (from an outsiders perspective) a mood of real excitement and commitment.

Hope this helps.
j
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