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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (356)	11/16/1999 10:41:00 PM
From: Stewart Whitman	Read Replies (2) \| Respond to of 1185

Paul, This is roughly what I would estimate per share after a quick glance: Alleghany: $10.00 <-> $15.00 Based on $1 to $1.50 in EPS Teledyne: $2.00 <-> $4.00 Based on 10x to 20x $1.40 EPS, 4% Revenue growth, 0.7 P/Sales Water Pik: $0.50 Based on 10x $1 EPS Total: $12.50 to $19.50 All EPS values post spin-off (ignoring ALT reverse split), share value estimates based on ALT shares. The problem with Teledyne Tech. is that revenue growth has been pathetic (~4% over the last 4 years). If you think it can grow faster, then you could put a nice technology multiple on it and get lots of upside, but I don't see that right now. I need to look back farther on the Alleghany part - see what average earnings are, etc. I just took a quick peak at 2 years history and then took the average EPS. What attracted you to the deal? Regards, Stew