for the benefit of the board, a few details on the barron's article.
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Safeskin Shares Could Fall More on Competition, Barron's Says
Bloomberg News
November 21, 1998, 1:53 p.m. PT
San Diego, Nov. 21 (Bloomberg) -- Safeskin Corp.'s share price could fall further as the maker of disposable latex and synthetic gloves sees sales and profits eroded by growing competition, Barron's reported. New glove manufacturing factories planned by competitors and a shift away from latex to synthetic gloves caused prices to fall an average 5 percent in the past six months, Barron's quoted unidentified traders as saying. David Morash, Safeskin chief financial officer, said factories planned by competitors won't come on line for at least two years, and that higher inventories and accounts receivable that recently hurt cash flow at Safeskin were temporary.
Safeskin shares fell 13 percent in late October after a Salomon Smith Barney analyst downgraded the stock to "neutral" from "buy" on concerns the company's sales growth would slow; yesterday, shares were unchanged at 22 7/16. |
