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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (9176)	5/26/1998 7:48:00 AM
From: Kip518	Read Replies (1) \| Respond to of 18691

Wade, in CUNO's last 10Q they stated: The strengthening U.S. dollar had a significant effect on overseas results when translated from local currency into U.S. dollars. Had currency values been unchanged from the first quarter of fiscal 1997, sales for the first quarter of fiscal 1998 would have been $3.0 million higher, or 4.9 percent greater overall than the same period in fiscal 1997. Sales from overseas operations were down $0.6 million or 2.8 percent, but increased 10.7 percent when compared in constant valued U.S. dollars. Local currency sales in Europe, Australia, and Japan increased 20.6 percent, 20.3 percent, and 5.1 percent, respectively. sec.gov It appears the manufacturing facilities in Asia hurt rather than help the company because they must repatriate the currencies. Since the last quarter, the Australian dollar has been trading at a historic low to the U.S. dollar and everyone knows what is happening to the Yen/Dollar rate. Last quarter, CUNO said strong U.S. and European sales offset most of their Asian losses. That could be true this quarter as well but given the Asian mess, they have been fighting upstream. Also since their last report, CUNO acquired Chemical Engineering Corp (http://biz.yahoo.com/prnews/980323/ct_cuno_ce_1.html) with terms not disclosed. We don't yet know the cost and effect of that acquistion on their quarterly results. Could be good or bad. Dr. Daisy brought CUNO to our attention last quarter because of its substantial investment in a project for Boston Chicken that was halted. However, (at least in the last quarterly report) that did not show up as a problem. I'm not sure what to make of the free coffee & donuts, but I seem to remember stories that Heartland Funds had been a big buyer of Work Recovery, helping to pump the price along with the internet crowd, but they had the great timing (?) to dump their shares just days before the WSJ came out with the story that essentially killed the company. Kip