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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (3571)	12/16/1997 7:26:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18929

Hi Rob, UWW is left from my Pre AIM days. It has such a low base that it has always been a trauma for me to handle - even with AIM. The original company split in two about a year ago. The new components are Unisource World Wide (UWW) and Ikon Office Solutions (IKN). Now that the cap gains tax is a bit lower, the trauma won't be as bad each time I get an AIM SELL. Both components got a bit pumped up on the news of the split, so when they came public as individual issues, the prices were rather fat. I had raised sizable cash reserves for both companies for that reason. Of course, those shares sold were at the higher tax rate! Once the initial fat burned off UWW, it settled between about $15 and $19. I had set up Newport with fat SAFE on both sides as I wanted the market to tell me where to set them, not the other way around. IKN really was taken to task after the split and fell from about $50 to a bottom of $20. I didn't start AIMing with IKN until about $25, I believe. Since then I've averaged down a couple of times and also, just recently, sold a few shares as well. UWW didn't generate any trades at the fat SAFEs I had initially established. Just recently I reduced them as UWW had fallen to the $15-$16 area. I think I've now bought shares three times. My intent is to trade it with AIM in the low teens to low twenties and see what happens. UWW is a very large (maybe largest in the world) fine paper distributor. This business is not a high margin one, but if managed correctly and if overhead is controlled, it can generate boatloads of cash. UWW built the IKN division from almost nothing in about 4 or 5 years out of cash flow. There's a long history of this in the corporate timeline. IKN is a large office equipment distributor and has a second business of providing service for LAN and other hook-ups. They've been on an acquisition safari for a long time. I hope they haven't gone native! My only concern is that they might be paying too much for the bought entities. I don't have a good way to judge this. Since both companies have distinct personalities, I treat them differently. I'd have to check Value Line to see just where each is relative to Book Value or other such measures. Best regards, Tom