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

To: Larry S. who wrote (16813)	4/11/2003 1:07:51 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78666

Larry, I own BMY. I just went through their proxy and 2002 annual report. I don't think it is a great value right now. Assuming forward going ROE of 20% (they had much higher ROE before current slump and 20% ROE in 2002), the expected annual return is ~11%. Of course, if they get bought out or if ROE increases, this is a conservative estimate. Regarding their numbers, since they restated everything, they should be "reasonably clean". :-/ I did not do very in-depth analysis, since I assumed they cleaned what they could and that the past is not very indicative of the future. Their FCF is negative in 2002, which is a concern, but for now I hold the stock. I believe James Clarke had BMY in one of his accounts. Maybe he can comment. :-) Jurgis