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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Alan Bershtein who wrote (531)	1/4/1999 11:54:00 AM
From: John A. Stoops	Read Replies (1) \| Respond to of 828

Allen, Thanks. Yep the market is competitive. I think I'd rather plow back the earnings from SFSK into more stock. I enjoyed the "Study overview" very much!! Good luck to you. Look at Microsoft today(my biggest holding). John

To: Alan Bershtein who wrote (531)	1/10/1999 11:23:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 828

via the san diego union-tribune. ----- Glove maker Safeskin has been belted by heavy-handed market DON BAUDER 10-Jan-1999 Sunday The stock of Safeskin has been sliced in half since summer "and trades at one of its cheapest multiples to earnings and cash flow since it went public in November 1993," says Timothy Vick, publisher of Today's Value Investor, a newsletter seeking stocks the market has over-belted. Safeskin, which makes hypoallergenic disposable latex gloves, has more than 60 percent of the powder-free glove market in the United States, Vick says. The stock has probably declined because hospitals and HMOs are bundling orders to save money. Also, insiders were heavy sellers when the price was near $40; however, there was heavy top-executive buying at $22. Safeskin has facilities in Southeast Asia, so it has benefited from the devaluation of the Thai baht and Malaysian ringgit. The return on equity is a handsome 30 percent, and the company could be a takeover candidate in 12 to 18 months, says Vick, who would buy the stock up to $30. Brian L. Bugbee of Value Line says Safeskin stock "is no longer one of Wall Street's darlings." But he, too, thinks the 50 percent decline has been overdone, "given that the company continues to post excellent operating results." Sales rose 31 percent in the September quarter, and earnings per share gained 35 percent. Bugbee looks for Safeskin to earn $1 a share in 1998 and $1.25 in 1999. Although glove pricing may weaken 5 percent or so in the coming year, volume should rise and production costs should go down. Sales should grow at 25 percent a year for several years. Value Line gives the stock its second highest (2) for timeliness and its average (3) for safety.