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Strategies & Market Trends : Value Line Investment Survey -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (35)	7/5/2000 7:55:54 PM
From: KevRupert	Read Replies (1) \| Respond to of 219

Kerry, I took a look at SYB. Very interesting situation. My impressions are that it should be at least a 50% gain by next year, assuming the spinoff occurs. The company had a 95% earnings reliability prior to the missed 4 cents. I, personally, avoid a stock like SYB - due to their financial situation. I'm pretty conservative in this regard, probably to my detriment. I focus on a few core companies to invest in, and look for a strong balance sheet (with low s/t debt, and plenty of cash). My figures showed $6 million cash, A/R's rising from the 2 prior years, and quite a bit more debt than I would like. (I believe the financial rating was a "B".) I believe the dental/life sciences dual company will provide the possibility for a strong 1-year gain. The life sciences should be rewarded with a higher p/e multiple (since I believe the growth breakdown is anticipated to be a 20%/10% figure). I don't like the fact that 2 of the 4 cents that were missed can be attributed to interest rates. The financial situation effects SYB's ability to buy back stock, make accretive acquistions, make its earnings, etc. I think the risk is low. I like the idea. I also think BMCS, & CA (after today's thrashing!) offer a good return/risk reward at their current prices (1-3 years out). Although somewhat subjective, the main criteria I look for are: strong financial picture, stable and competent management, innovation to a certain degree, industry leaders, and some sort of a catalyst for stock price movement (upward hopefully). Unfortunately, this will keep me out of opportunities like SYB currently possess, Chrysler in the early 80's in the $3 range, and other huge turnarounds. Fascinating idea. I really think it is a low risk/good return idea.