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Non-Tech : RJR NABISCO (RN) WILL IT SURVIVE?

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To: thomas hayden who wrote (5)4/13/1998 1:45:00 PM
From: Jerry Krim  Read Replies (1) of 26
 
This stock is a great value. Seventy five percent of their cash flow in their latest quarterly report ($498 million) comes from food and foreign tobacco sales. Their interest expense is $224 million (less than half.) This is not a candidate for bankruptcy, but a bargaining position on their part. I believe the company will survive, although their domestic tobacco business will be a lot less profitable than it has been in the past. By the way, the nabisco stock is now worth around $34 per share of rn stock.
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