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Strategies & Market Trends : Position Trading Forum

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To: Glenn who wrote (4099)10/23/1998 12:02:00 AM
From: bob stroup  Read Replies (1) of 7247
 
Glen, ABTX is more of a value play than earnings. They've acquired many forage/turf companies with lines from genetic research to distribution for end users i.e. farmers, Home Depot etc. Chemical and Ag related companies such as Dow and Dupont have paid approx. 6x rev.s for co.s such as Dekalb and Mycogen. ABTX is for sale or looking for equity deal with ML's guidance. I'm in the Ag bus and see a push to find plants that don't have reliance on chemicals, increased productivity and appearance. As for earnings, i expect more but any negative surprises well be met with the return to value imo.... BTW ABTX is selling at 1x rev.s. ..... Bob
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