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Gold/Mining/Energy : Dorel Industries (DII.B , M or T) good earnings report -- Ignore unavailable to you. Want to Upgrade?

To: Hassan Lakhani who wrote (70)	11/7/1999 6:18:00 PM
From: Jay Arkay	Respond to of 96

Hassan, Sorry for slow reply. I believe that Bombardier is also worth holding for the longer term--another great Quebec company like Dorel. Bombardier is one of Canada's few pre-eminent big-cap growth companies; they go from strength to strength. Given its size, longer growth record, holding by major institutions, and analyst coverage (all superior to Dorel's), Bombardier will naturally command a considerably higher PE ratio than Dorel. Both Bombardier management and the analysts are predicting strong continued growth in sales and EPS over the next 3-5 years, so I would rate it an excellent prospect for long-term investors. As to whether BBD has "much upside left over the next little while," I am unable to comment as my investing horizon and style is much longer term. Nevertheless, I do believe that Dorel remains an excellent holding both intermediate and long-term (but who knows about the weekly or monthly share price movements?) One thing that Dorel has in its advantage vis-a-vis Bombardier is the prospect of a significant expansion of PE multiple over the next 2-3 years as the company continues to grow and command greater analyst/institutional attention. Combining PE expansion with ongoing EPS growth offers the prospect of very handsome returns for the investor--so long as Dorel continues to perform.

To: Hassan Lakhani who wrote (70)	1/10/2000 1:27:00 PM
From: Jay Arkay	Read Replies (1) \| Respond to of 96

Hassan, Dorel exploding today, up more than $2.50 (B shares) to $29.80 as I write. Do you or anyone else have a clue as to what is driving this? It seems much too early for even a leak on the Q4 and annual results, as their quarter and fiscal year ended at the end of the calendar year, less than 2 weeks ago. Still, it is possible that there is some kind of leak or disclosure about the quarter's sales. It also does not appear that an institutional buyer has suddenly jumped in, since the daily volumes have been moderate, well below the 50,000 mark. The only spike in volume, one day with over half a million shares, occurred back in mid-December when the price was in the $23 range. So if it's not some leak on Q4 sales, is it just the market coming back to rationally value this company; not likely to happen all of a sudden so sharply or without big volume. Could it be that Dorel is pursuing another big acquisition target? (Just speculating?) Does anyone have news or thoughts?