Yes john,
I do believe you are right about the thermo group in general, as they are all "connected" to each other through thermo electron, and with the guidance and money of thermo electron but be careful with some of these PE multiples! As I'm sure you are aware, PE is based on expectations and all that needs to happen for a stock price to fall on one of these tech-stocks is a little bad news since the existing stock price may have little, or nothing to do with earnings. When you get into PE multiples of 4-500, the potential is quite high in this type of stock for even a little bad news on the economy to wipe out that profit you were getting close to taking. Granted, the stories on most of the spin-offs in the TMO group have great stories, and are even growing sales and earnings-wise but at the same clip as the PE? I too am an admirer of the TMO family and love the concept of their spinoff strategy, as well as what it is they are doing in so many fields that seem to be important and useful far into the future. I like, for instance, the fact that they are focusing on medical devices and many environmental issues that will always be in the news from here into the next century for sure. I think that a long term investment strategy could be utilized to capitalize on these stocks, possibly by simply buying just TMO since it is still quite small in size (sales under 5 bil). That leaves a lot of room to grow when you consider the fact that the GE's and the WALMART'S are so many times larger. You know, you always hear about the little old lady who bought her favorite stock for 30 years and now she's a millionaire 'cause she hung on through all those bear markets!
Keep up the good work. I'm looking for a few good men
EDWIN K. |
