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Gold/Mining/Energy : Dorel Industries (DII.B , M or T) good earnings report

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To: Jay Arkay who wrote (43)7/2/1998 11:32:00 PM
From: Hassan Lakhani  Read Replies (1) of 96
 
I agree with you Jay. I have been following Dorel for a while, but only recently bought in. The recent acquisition of Ameriwood was what convinced me to jump in. Dorel has a great track record of solid EPS growth, and the Ameriwood deal provides further diversification in the RTA market. One thing that I have noticed with this bull market is that larger and larger premiums are being placed on companies that are diversified and therefore have a little more stability. Just look at Bombardier. Its PE has traditionally been around 20, but it is now up to almost 35. While BBD is obviously much bigger than Dorel, given that Dorel has a better track record of late, I wouldn't at all be surprised to see a gradual rise in DII's PE.

Hassan
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