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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (3936)	10/10/1998 11:28:00 AM
From: InvestorLady	Read Replies (1) \| Respond to of 18998

ABTX is trading at less that 1 times annualized revenues? Other seed companies were bought recently at 4-6 times revenues. Please, what is the basis for your opinion? Lady

To: Mr. Pink who wrote (3936)	10/10/1998 1:35:00 PM
From: F. Lynn	Read Replies (1) \| Respond to of 18998

What about the huge bids for DeKalb and Pioneer? I think the idea here is that ABTX will sell out to some drug/ag.chem company eager to extend their franchise; at least that is what happened with DeKalb. One could argue that these companies do have sig. assets and huge barriers to entries in their seed libraries. Declining seed diversity from the spread of corporate agriculture means the resources needed to develop new strains (the huge library of old seeds of varying origins) is next to impossible to recreate. The value of these libraries is part of ABTX's franchise value, and helps explain its huge valuation.