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

To: Paul Senior who wrote (17347)	7/2/2003 9:22:51 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78748

I'll use today's news on BAX to free up some cash and take a tiny position in HCA. BAX has a lot of issues - margin pressure,accounting, high stock option dilution, increasing balance sheet leverage due to weak cash flow, negative topline growth and low R&D expenses (6% of revenue). Bioscience which is where the blood collection buiz is lumpted in and it's about 40% of revenue, so the margin pressure there goes a long way. I still see that BAX needs to accelerate earnings this year quite a bit to make the numbers for earnings/share. When adjusted for currency and acquisitions and stock dilution, the growth for BAX is certainly negative. Even though the market reaction on the not totally unexpected shortfall was mild, i think this stock has significant risk at 25$/share.