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Biotech / Medical : RXSD Rexall Sundown -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (174)	11/6/1998 1:50:00 AM
From: Jeffrey Lee	Respond to of 327

About RXSD Rexall Sundown for November 06, 1998 from Argus Independent Equity Research: There was heavy selling in the RXSD shares of the Rexall Sundown after an analyst downgrade prompted the company to issue a report predicting a year-over- year decrease in the first quarter due to a sequential decline in nutritional supplement sales in the past month, which prompted retailers to scale back some of their orders. However, the industry growth rate remains at 15%, far better than most consumers goods businesses. Moreover, we believe that Rexall, due to its strong direct selling network and relationships with major retailers such as Wal-Mart and Dollar General, will maintain its leadership position in the industry. We are lowering our estimates from $1.34 to $1.24 for 1999 and from $1.75 to $1.61 for the year 2000. However, we maintain our BUY rating and remain bullish on the fundamentals of the nutritional supplement business and on Rexall Sundown. The RXSD shares are trading at 12.5 times 1999 earnings and 9.6 times our estimate for the year 2000, despite a growth rate in the 20-25% range. We regard the current selling frenzy as a buying opportunity. The BUY-rated RXSD shares closed Thursday at $13-1/16, down 8-15/16. (LHB)

To: Dorine Essey who wrote (174)	11/6/1998 9:19:00 AM
From: Gary Korn	Read Replies (1) \| Respond to of 327

Rexall Sundown (RXSD) at 12ish is a great buy: o No debt. o About $100MM in cash on hand. Given 75MM shares outstanding, that is more than $1/share. o Excellent EPS growth, including into the future and even with the slowdown. o Back in September, the company authorized a $100MM stock buyback. At current prices, that permits the repurchase of over 10% of the company's stock. If I were the company, I'd be buying now. o Industry growth has "slowed" to 15%. Heck, that is a great growth rate compared to most other consumer products. o I'd encourage people to look at the company financials on the WSJ Briefing Book (for subscribers) or at marketguide.com Gary Korn