Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: WTT2 who wrote (1420)	2/11/1998 7:49:00 PM
From: CARYTRE	Read Replies (1) \| Respond to of 1894

MORE FLUFF ANALYSIS!! AND THE WINNER IS.......... Hello ALL! If I was Warren Buffett and I wanted to buy a medical products company on the open market my main concern would be return on capital. This analysis provides a valuation comparison which shows me what one dollar is really buying me when I buy a share of stock. This analysis does not differentiate gross margins or outlook for the product line. The Fluff in a stock price, as I call it, is simply the amount that market cap. exceeds net equity. By dividing Fluff by Sales a true picture of value is given. Because it shows me where I will get my greatest return on investment, if I were to buy the company in the open market. It also shows where there is potential risk. In an acquition FLUFF would be categorized as GOOD WILL. Another simple but enlightening comparison is just looking at net equity per sales. This comparison shows the intrinsic value relative to sales. In this comparison ACMI is a stand out winner. Because it has the lowest net capital per dollar of sales, therefor it would provide the greatest return on investment. MURXF on the other hand has the least FLUFF per sales. ------mkt.cap--sales--n.eqty---shares--FLUFF--F/$1 sales--n.eqty/sls acmi----26.2----16.7----3.46----22.7----22.7-----1.35--------.207 acyt----73.3-----2.4---38.6-----12.5----34.7----14.7-------16.35 cytc---461.9----26.3---98.1----17.4----363.8----13.8--------3.7 npth---211.2----10.8---57.8----14.4----153.4----14.2--------5.3 murxf--141.3----105.9--66.8----16.6-----74.2-----0.7---------.63 Cheers, C.S.