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.

Non-Tech : SPARTECH (SEH) - AN UNDISCOVERED GEM -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (34)	3/11/1998 10:10:00 PM
From: Paul B.	Read Replies (1) \| Respond to of 66

Bob, I attended the annual meeting today and the mood was very positive. Highlights: Spartech introduced five new engineered plastics last year and have five more in the works for introduction this year. They want to be known not only as an acquirer of companies, but also a true leader in plastic technology. Their acquisitions so far have been gradual, just one at a time, easily digested. The CEO, Brad Buechler, mentioned one of their competitors had bought several companies and was now having difficulty absorbing them all. Recent product introductions have led to increased sales from other companies. Their introduction of the rooftop for Coleman campers has led to orders from Jayco, another camper manufacturer. This was their 25th consecutive quarter or sales and earnings growth. We even received a nice Texas Instruments day planner, containing a calculator, alarm clock, etc. in a silver box marking the 25th quarter. The addition of Polycom, a former division of Huntsman Chemical, not only gave them additional sales of $115 million dollars, but gave them a presence in a different area of the plastics business (color specialty compounds). The CEO felt that now Wall Street may give them a higher valuation, since they were broadening their product line. Is there room to go from here? I just checked their market cap. It's at $535 million at today's close. Spartech is projecting sales of $690 million this year. They are still selling at less than one times sales (based on projected sales). The market average is 1.5. Mesirow Financial, First Analysis Securities, and Everen Securities all give a price target of $22-23 a share anywhere from 6-18 months out. Finally, one shareholder stood up during the question period and said the return on equity for the past three years has been in excess of 40%. He made a comparison to Warren Buffet who has averaged 28%. He asked for and received a strong round of applause for management from the shareholders present. Jane, and a few members of the investment club she is involved with, was also present at the meeting and may have a few observations to make.

To: Labrador who wrote (34)	3/22/1998 11:22:00 PM
From: littleguy	Read Replies (1) \| Respond to of 66

Bob, Paul B., Jane, and thread: Thanks for drawing my interest to this issue. Like Jane, I follow smaller St. Louis stocks (LB, EASI, ZOLT, TRPS, etc.), and this one has gotten favorable press recently. My full service broker, called on 18 March, surmises that the stock has flown a bit high lately, but would be attractive at $17-18. This is not the sort of issue that this firm typically follows, so I would add that the analyst report is bullish on fundamentals and notes that its earnings assumptions are not especially aggressive. Debt's a concern compared to similar companies. Sees a price of $20-21 in twelve months -- boy, time flies fast! He's been way wrong before, and gosh knows so have I (WFR, ouch). Thanks again, though -- I'm watching the marketing strategy and the new product areas, and expect to join you soon.