Very bullish article on Microsoft Investor
investor.msn.com
Here are some excepts, but I suggest reading the article.
Safeskin's products are oddly high-tech and defensible -- and the world market is both vast and largely untapped. <snip>
Smith Barney analyst Melissa Wilmoth says Safeskin gloves have the lowest antigen content in the industry -- a status that helped it develop, in her opinion, the "best gloves in the world." The firm has developed substantial contracts with such organizations as Columbia/HCA (COL) and several other top health-care organizations and wholesalers, such as Costco (COST).
"They didn't approach Columbia," says Wilmoth. "Columbia's workers requested Safeskin products." According to the analyst, the deal with Columbia lasts six years and has just begun. <snip>
Last year, only 13% of company sales came from outside the U.S. -- mostly Europe. Practically speaking -- with less than $25 million in sales -- Europe is still untouched. However, today the company is still trying to build enough capacity to meet U.S. demand. Safeskin is moving up from a run-rate of 3.5 billion gloves annually today to 5 billion by the end of 1998, according to a company spokesman. Chief financial officer David Morash said the firm will continue to expand capacity next year as well. The goal: a run rate of 8 billion gloves per year by the end of the second quarter of 1999. <snip>
The company should grow at about 25% per year over the next five years, so investors can expect to own a piece of a $5 billion company by the end of 2000. However, a suitor could come along and quickly end the suspense for shareholders. One thing's certain: Safeskin would fit a giant medical-supply company -- pardon the expression -- like a glove. |
