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Strategies & Market Trends : BARNES- B : AN AEROSPACE GIANT THAT HAS A LOT OF POTENTIAL -- Ignore unavailable to you. Want to Upgrade?

To: Market Tracker who wrote (80)	3/26/1999 9:30:00 PM
From: Market Tracker	Read Replies (1) \| Respond to of 87

I liked it at 20, I gotta love it at 16. I just received the 1998 Barnes Group annual report in the mail this afternoon, and have given it a quick glance at this stage. Sales have advanced a paltry 9.6% over the past 2 years, (12/96-12/98), while gross operating margins, (sans Mr. Martin's bag-o-gold), did advance from 9.2% to 10.4%, it is clear to see he wasn't worth his salt. I wish Mr. Carpenter & Co. good luck as they move forward into the next millenium. It's time to advance the rate of growth, and Bowman has got to carry more of that growth load. Aerospace has grown admirably, while Associated Spring continues to steadily plod along. We have amassed a cash horde of practically $43 million, and reduced LTD by 10%. Return on shareholder's equity must be returned to the 20%++ area through improved performances at Bowman in particular. It's time this division shows us what it can do. It should be well-positioned to take on this challenge. Meanwhile the stock price continues to touch new 52-week lows as apparent institutional lightening takes place. The company's plump 4.5% indicated dividend yield, and P/E ratio bordering on 6.5X this year's estimated earnings, should make this a no brainer going forward from these levels. The company could even help the effort with a modest share re-purchase program. They should also seek additional sponsorship on Wall Street. MT