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

To: Wallace Rivers who wrote (17015)	5/8/2003 11:36:48 PM
From: Spekulatius	Respond to of 78525

SWK opinion - there are a couple of red flags. First of all SWK's debt has been rising lately, due to acquisitions and an equity hedge program that has to be settled with debt now. Despite acquisitions, growth has been stale and costs are rising, so earnings have come under pressure. The situation reminds me a lot of BAX, which has lost 60% of its value within 1 1/2 years. I think it's premature to bet on a turnaround, since the restructuring has just begun and these things tend to drag out much longer than most investors betting on a quick rebound realize. What i have found that it's often possible to jump in on a turnaround a a later stage when fundamentals are somewhat improving and the shareprice is still depressed when some investors are growing impationed with the progress.