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

To: Stocker who wrote (579)	2/8/1999 8:14:00 PM
From: Steven Dopp	Respond to of 828

It's possible to get free S&P reports on the web if you have an account at Waterhouse Securities, via their webbroker.

To: Stocker who wrote (579)	2/8/1999 8:36:00 PM
From: Beltropolis Boy	Respond to of 828

for the record, the overall S&P 5-star report is dated 30 jan 99. they cite a fair value of $36.60. here's an excerpt ... ----- Overview 21-JAN-99 Revenues and earnings should continue to rise 25% annually through the end of the decade, on growth in the powder-free glove market, supply contracts with large purchasing organizations, new product introductions, and expansion into new markets. In light of recent sales initiatives and SFSK's increased production capacity, this projection could be conservative. Earnings will benefit from manufacturing efficiencies, customer conversion to wider margin powder-free and synthetic gloves, a shift to lower-cost production facilities in Thailand and a positive currency impact as a result of Asian manufacturing. These factors should combine to keep gross margins at about 52% in 1999, versus 46% in 1997. To meet current and anticipated demand, SFSK has completed a major capacity expansion ahead of schedule, with production capacity expected to reach 6.5 billon [sic] exam gloves a year by the end of 1999. We look for 1998 EPS of $1.01, and see 1999 EPS of $1.26. Valuation 21-JAN-99 We recently upgraded the shares to buy, from accumulate, based on our confidence in SFSK's ability to achieve sustained revenue and earnings growth, driven by growing demand for SFSK's high margin powder-free medical exam, technology and scientific gloves. Moreover, with plant capacity expected to reach 6.5 billion gloves per year, SFSK is poised for consistent growth. We expect long-term revenue and earnings growth in excess of 25%, driven by demand for SFSK's powder free gloves in the hospital, alternative care, dental, and scientific markets. With the stock well off its recent high, and trading at a discount to its long-term growth rate, we believe the shares offer an opportunity for significant price appreciation.