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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits" -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (1114)	12/15/2007 8:52:41 AM
From: Jurgis Bekepuris	Respond to of 1185

COV - 2007 results are IMO not impressive. Company is trading at ~2P/S, 3 P/book, ~20 2006 P/E (or similar 2007 P/E after removing extraordinary items). There is pretty much no growth so far. Not very impressive IMO. IMO at this point in time it's just a pure bet at management execution. If they manage to "wake up" the company, the stock will appreciate, if not, it could fall from here.

To: Spekulatius who wrote (1114)	12/15/2007 9:33:55 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 1185

TEL actually looks better than COV: Company is trading at ~1.4P/S, 1.6 P/book, ~16 2006 P/E (or possibly similar 2007 P/E after removing extraordinary items). There was about 9% sales growth in 2007, compared to no growth in COV. On the other hand ROE based on 2007 equity and 2006 earnings is about 17% for COV and 10% for TEL. For both companies, a substantial portion of equity is Goodwill and intangibles... I still think both companies would be buys only based on the theory that all spinoffs do well. I don't see them as very attractive value propositions otherwise.