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Non-Tech : FiberMark (FMK)

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To: JakeStraw who wrote (7)4/7/1999 8:53:00 PM
From: Oak Tree   of 9
 
No they didn't speculate who would be buying. It was on page 178 of the april 12th edition, and 10 companies were listed. The companies were chosen based on excellent increases in operating profits while their stock price droped by as much as 58%. FMK had the highest 5 year increase in operating profit, 38.5%/year, and a P/E of 11.7 with a 56.8% decrease in stock price. This compares to the S&P 500 of 19% increase in price, and a P/E of 34. The point of the article is that small caps have no buyers since mutual funds are too big and can't easily get rid of or buy shares in companies under $250 M. So the only people buying stock in these companies are their bigger competitors who can buy the company using their inflated shares.
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