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

To: Crossy who wrote (269)	10/14/2001 8:09:50 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 724

>> Interesting that you arrive at $15-20 for the existing biz. Means a Price/Sales ratio of 1.5-2. << You saw Extra Pale's analysis of existing numbers, projecting forward. A PE of 20 for approximately $15/share. And I would represent that "bioterror terror" (we really need to do something to temper this, some who are easily influenced are incapacitating the U.S.) will place tons of business on their plate for the foreseeable future. They provide many of the basic guts of a micro lab. Given that business and demand were already strong, I'm enthusiastic. The last time I got enthusiastic, a bunch of people followed me into this roach trap at about $7. ;-) I look at the company this way...... (1) 47% of DGI, and (2) a company that is doing 59.2M in sales (projecting last quarter forward) per year at 41% margin. If you take that "margin" of 24.3M and compare it to a market cap plus debt of 38M, it screams "buy me!!" So...... even without an anthrax scare, this sucker is way (IMO) undervalued. To me, it appears that there is an assignment of about minus $60M for management/the founders. Downside....... 1. Damn tacky insiders are preparing to throw shares (incentive options) at the thin trading. 2. I assume that some of the "inventory" is dead, and that a write-down is coming. However, the company owns the manufacturing facility, and I believe that it's carried at a fraction of true value. I therefore consider these two factors to be a push. Sudden upside......... any positive news re. DGI. I enthusiastically encourage/solicit/beg for discussion, positive or negative.