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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (12612)	6/7/2001 6:32:51 PM
From: Crossy	Respond to of 78732

Jeffrey, understand your thoughts on ALU.. let me add my 2cents: they were acquiring many pharmaceutical related business, sort of a sector "rollover" plan. Their base was distributing fragrances & health/beauty products. This part was not growing last year and the gross margins here are meager.. What I like is seing their private label fragrances growing 100% y/y. Gross margins here are quite high, usually 50% or more. What I do not like in ALU is their pharmaceutical segement which posts huge sales but meager contribution to profits. The 10% gross margin or less for a pharmaceutical distribution company is really problematic. When I see that adressed in the future I might be a buyer. Valuations are good and the "gearing" is quite fine.. best wishes CROSSY