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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (7231)	5/20/1999 10:52:00 AM
From: jeffbas	Respond to of 78842

Paul, your comments on COO are fair. I have talked with mgmt many times. I think they would admit that they did not handle the mfg transition well and were blindsided themselves. This is the mgmt that took the stock from a buck to $50 and "could do no wrong". The bloom came off the rose last year. Aside from the temporary problems, there were concerns about other firms entering their space, concerns about laser surgery's (minimal) impact on the lens business. Plus it is tough not to get rattled when a stock drops from $52 to 11, even if you sold most of the position. The business is "very competitive" generally, but COO operates mostly in the high growth Toric end which is more performance sensitive and less price sensitive than the standard spherical (no astigmatism) lens business. Note they instituted a dividend today. Also note yesterday's news which includes some comment on much higher peer valuations for WJCO and OCLR. I told some people this morning that I believe the stock will be back in the $30's in 6-12 months, if not sooner. If you must get out, take a look at writing a covered call as a way to get a better price.