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Strategies & Market Trends : Disciplined Investing, especially the NAIC way -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (324)	5/9/2002 7:59:56 PM
From: The Philosopher	Read Replies (1) \| Respond to of 469

I don't know PRX -- is it still worth looking at? We held WPI and did quite well with it until it decided to go into brand drugs. At that point we sold it, since we had no track record of the company as a brand name company to base an evaluation on. The problem I see with generic makers is that it's all based on price competition. They all have to comply with the same formularies and regulations, so prices can really get cut to the bone. And there's still a huge potential liability if a batch gets messed up.

To: - with a K who wrote (324)	5/9/2002 10:03:43 PM
From: Mark Marcellus	Respond to of 469

One question on Merck is whether you want to own the Medco spinoff, and what that is worth. I agree that it looks interesting here, but the Medco thing makes it complicated. The easy way out is to take the view that spinoffs are usually good investments, so the odds are in your favor if you just buy it now and hold both after the spinoff. If you use that theory though, you probably need to go in with the plan of holding for at least 3 years come hell or high water. That's probably how long it will take for things to sort themselves out and the true value become clear.