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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (438)	10/18/1998 2:07:00 AM
From: peter michaelson	Read Replies (1) \| Respond to of 4691

Or Hanson Industries, which I think ended up badly, although I can't remember why. Sounds like Dover is able to light a fire under acquired managements' butts using a stock option plan. Typically these un-sexy industrial businesses attract un-sexy managers, able but not overly ambitious. For this reason usually profitability can be greatly enhanced through any number of avenues (balance sheet optimization, focused sales efforts) if (1) the relationship is good, (2) a little greed and inertia can be instilled in operating management and (3) the managers' managers know what the hell they are trying to do. Having only read the annual report, I get a good feeling since the report (1) does not push the PR too hard, (2) provides the essential financial info for each major operating division (i.e. assets employed, operating profit, revenues) and therefore recognizes what is the essential info and (3) maintains consistency with stated strategy. The corporate overhead seems reasonable too. Nevertheless, continued growth through acquisitions is not easy, the PE multiple is not low, and the opportunity for enhancing profit margins appears limited. Not that I have completed my entry into the contest, though, James. I have a feeling there is a financial trick hidden in here, like 40 year old asset bases, or that pension plan, or sumptin. g'nite, peter