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Non-Tech : U S FILTER (USF) A Water Stock ! -- Ignore unavailable to you. Want to Upgrade?

To: Steve Childs who wrote (126)	11/4/1997 8:35:00 PM
From: douglas scott goldstein	Read Replies (1) \| Respond to of 361

Wow, 40X P/E on USF! I think that's streching it. There was an analyst meeting in Chicago today. Supposedly it was quite upbeat (the company has a billion dollars in the acquisition pipeline)- however, they did warn analysts that they will be coming in on the lower end of the $0.25-$0.35 estimate for the quarter. This is one of the main reasons for the weakness today and yesterday. Operations remain quite good however, and I'm starting to think that this stock is looking quite juicy as it nears the $30 region. My only cause for hesistance right now is the stock market itself. In terms of placing price targets on USF- I'd look more for a FY '99 P/E of around 28X or 30X the FY '99 $1.75 estimate, pushing the price into the low $50s region. I'm thinking a buy at these levels though- esp. on the recent price weakness- and most analysts agree. I'll let you know what the full reaction to the meeting was tomorrow. Of course, the price action tomorrow will probably make this quite evident. DG

To: Steve Childs who wrote (126)	11/4/1997 10:54:00 PM
From: robert duke	Read Replies (1) \| Respond to of 361

Well maybe I am figuring out the PE the wrong way. I took the price which it was at last week($39)/the earnings for the last 12 months which is now $1.01=which is a PE of 38.61. I hope I am doing this the right way. So if the company has 1 billion in acquisiton pipeline isn't that a good thing. It will increase earnings in the long run. Value Line estimate that the next earnings will be at .35 a share for the quarter. Any information helps. I do think that 32 is an realy low price.