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

To: Steven Dopp who wrote (596)	3/2/1999 10:44:00 AM
From: Steve Mintz	Read Replies (1) \| Respond to of 828

Here's a theory, nothing more. Jaffe started Nutri Foods in 1977 when he was only 24. In 1985 he sold it to Coca-Cola. He worked for Coke for 2 years, then took over Safeskin in 1988. Suppose that Jaffe is thinking that given (1) the one product nature of Safeskin, (2)the threat of future competition and (3) the fact that it may make sense for a more diversified competitor to buy Safeskin instead of adding its own capacity, now or in the near future may be the best time to sell the company. In that case, buying back stock with debt that can quickly be repaid out of strong cash flows at a price less than what he would expect to sell the company for would be a smart move because it would increase the % of the company he owns.