Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (16610)	3/14/2003 9:37:09 PM
From: Spekulatius	Respond to of 78625

Regarding BAX - BAX Management to do list: -clean up pension liabilities, reduce assumed return on pension investments from 10 to 8% (cost about 400M$) - reduce debt. Abandon acquisition strategy and reduce growth targets. Generate (real) free cash flow and reduce debt. The stock is cheap and I don't believe that Baxter is run by crooks. I like the business they are in and I believe BAX should be able to generate ample free cash flow and good margins. However I do believe that management is still hanging on overoptimistic assumptions and before the above issues are cleared up I will be extremely careful, given the unforgiving market that we are in. Nobody want's to live through a chinese watercurse of bad new with his investments, so i think BAX mangement would be better off to bite the bullet now.