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Technology Stocks : Thermo Electron (TMO) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Ferguson who wrote (304)	8/24/1998 8:31:00 PM
From: John Hayman	Respond to of 450

Scott, Well, I hate to see anyone lose money. For now I would stick around and see what happens. The company is making money like you said, but the story has changed. It may take 6-12 months for a positive move, but you appear to be a long term investor. I don't like to average down myself, but you may want to start thinking about that if the new plans start to look ok. Most long term investors like to buy good companies when they stumble. Well, if that philosophy is correct, this may be that situation. Lets keep checking around and see what is developing, maybe something good will come of it all. With all the cash TMO is sitting on, I would think they have a plan for that. Buyback for sure, but maybe a big acquisition in the wind! Hang in there for now and keep up with the developments. later, John

To: Scott Ferguson who wrote (304)	8/25/1998 12:44:00 AM
From: Hectorite	Read Replies (1) \| Respond to of 450

Merrill's downgrade was based on reduced operating earnings primarly >from Thermo Instrument's Thermo Quest sub. I can't get making out TMQ as the scapegoat. They (TMQ management) said getting orders late was what screwed up the quarter. They didn't put a number on that directly, but said receivables went up maybe to the tune of $7M revenue. That hurts TMQ with revenue of ca. 100M, but doesn't seem like it should tank TMO raking in almost a billion (revenue) a quarter. Also mentions that TMO is seeking a large biomedical acquisition, but that nothing on this front has happened or appears to be happening any time soon. That's really got to be the crux of the matter. Got any ideas on the "real" internal growth of TMO? I'd wager it's mid single digits. Now they're big enough that messing around letting tiny subs (by comparison) buy-up still smaller companies just doesn't add anything to the bottom line. "Victim of own success" syndrome? I'm impressed they've kept it up this long! I bought in over two years ago at about $42, having been Well, if you believe as I do the stocks take a long time to get out of the doghouse in this market, you could realize the loss for tax purposes and buy back in 30 days. Stock could go up to 20+(42-20)*.3=26 and you'd still be ahead. It's a gamble, but without a major positive announcement, and earnings not due out till october, I'd be comfortable with it. Or, (and I'm not sure if you could get an IRS auditor to go along!) you could sell tmo and buy thi. They been joined at the hip forever, so you would pretty much catch any unexpected upside (or downside!) that way. just my thoughts...not advice.