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 : GFIH Graham-Field Health Prod -- Ignore unavailable to you. Want to Upgrade?

To: Paul Tarbox who wrote (43)	6/19/1998 11:27:00 AM
From: Bob G	Respond to of 84

Why even use the word "bankruptcy"? This company hit a bump but that's not all that uncommon. What is uncommon is the price relative to the fundamentals and the opportunity that this may present. Graham Field Health Products (NYSE:GFI) 98 Q1 Shares Outstanding 30,839,000 Estimated Revenues 98 300,000,000 depending on sources for Medical Equipment & Supply : average industry profit margins 8-10% average industry P/E multiples 49-100 average industry Price/Sales 5.9 (GFI P/S = .5) If GFI was just half as profitable as their industry (4.5% profit margin) ... and sold a p/e of 20 which is only about 20 - 50% of the industry and less than the general market the following values could be calculated: 300 million X 4.5% = 13.5 million / 30.839 shares = .43 per share at a P/E of 20 X .43 = 8.60 49 X .43 =21.07 Remember this is at only half the industry profit margin (at full industryAVERAGE profit margins the values would DOUBLE) The company is on record to eliminate duplications in distribution facilities due to acquisitions, reduce costs, and to increase margins. Does management really have to be all that sharp to do half the profit margin and the stock sell at half the industry PE and one tenth the industry P/S? One short term negative is the stocks margin status while below $5 a share. "Bankruptcy" or a "Value" stock?

To: Paul Tarbox who wrote (43)	6/19/1998 12:29:00 PM
From: stockster	Read Replies (1) \| Respond to of 84

Ok Paul, you convinced me. I am a neophyte on margin calls. I had bought mine yesterday on margin, and after reading all this margin call stuff, I bailed at 4 1/2. I really like this company. Spoke to my broker after for an explanation on the margin calls and realized I bailed prematurely. That's the breaks I guess. If it goes back down to 3 7/8 to 4 1/8 again, I am jumping back in. Maybe not with a margin buy this time. My stomach was in knots after reading the Yahoo message board. With their current ratio, I don't see bankruptcy at all. Of course, what the heck do I know. Stockster