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Biotech / Medical : RXSD Rexall Sundown

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To: Dorine Essey who wrote (174)11/6/1998 9:19:00 AM
From: Gary Korn  Read Replies (1) of 327
 
Rexall Sundown (RXSD) at 12ish is a great buy:

o No debt.

o About $100MM in cash on hand. Given 75MM shares outstanding, that is more than $1/share.

o Excellent EPS growth, including into the future and even with the slowdown.

o Back in September, the company authorized a $100MM stock buyback. At current prices, that permits the repurchase of over 10% of the company's stock. If I were the company, I'd be buying now.

o Industry growth has "slowed" to 15%. Heck, that is a great growth rate compared to most other consumer products.

o I'd encourage people to look at the company financials on the WSJ Briefing Book (for subscribers) or at marketguide.com

Gary Korn

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