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Biotech / Medical : New Brunswick Scientific Co., Inc. (NBSC) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (68)	7/17/2000 11:46:38 AM
From: scaram(o)uche	Respond to of 724

BIOI reports today, hits $200M capitalization. No DGI, no claim one in any patent that has the potential impact of the DGI claim, no Novo license. Book is $3 1/2. Cash-in-hand totals $2.5M. Shareholder's equity minus paid in capital is (-)$1M. Sales last quarter were $8.4M, admittedly at 61% margin (but note the increase in inventories). Compare to NBSC.

To: scaram(o)uche who wrote (68)	7/21/2000 12:52:03 PM
From: tuck	Respond to of 724

Rick, Speaking personally, I like the first way, by way of the DGI reverse merger into shell scenario. You and I both know one that's available. <g> I think the cash could be a short term problem. It is unknown how much of the credit facility is being used and what exactly the related expenses are. Thus the 2Q upside suggested in the last 10-Q (inventories high then because they expected a big second quarter after 1Q snafu) could be trimmed by higher than expected interest expense. On the bright side, cash flow should be improved mightily almost no matter what happens, at least for a quarter. But I think this is priced in. It seems to me the stock has started an earnings anticipation run and may sell off when it actually reports even if it hits expectations. If higher than expected interest expense causes a miss, NBSC could reverse pretty sharply. If so, that may be my entry point. Because despite all of the above, I concur with your take that just about any deal/positive surprise should provide a boost, and that it is indeed undervalued by many metrics. Last Q's bump likely has kept it off may people's stock screens, and it's a little more complicated than your average picks and shovels play. Thus the small following. Classic value play setup. Thanks for your many thoughts here. Cheers, Tuck