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Author: kishpj01 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 50  
Subject: Re: What the heck Date: 11/19/2000 6:43 PM
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Just hand on ! Grace has been hit by THREE big negatives this year: High interest rates that cut into consturction related chemicals, high energy prices and thus rising raw material cost that cut into profit margin when customers won't take any increases and/or loss in sales when customer switch to more agressive competitors willing to buy market share. The Euro has also been weak ... thus affectin the bottom line some. When the smoke clears (ie: interest rates come back down and raw material prices stabilize or come down some, and/or if the Euro returns, I expect this stock to regain.

Lots of BIG IF's, but .... Grace continues to target 12% to 15% earnings growth and 5% to 7% revenue for 2000, based on the year-to-date contribution from its Six Sigma tools-based processes.

In a press release Tuesday 11/14/00, the company said it is targeting 5% to 7% revenue growth for 2001, with plans to offset the expected "substantial" increase in energy and raw materials costs with productivity initiatives. If these productivity increases are successful and operating costs can be reduced that will be another BIG plus.

A First Call/Thomson Financial survey of six analysts produced a mean earnings estimate of $1.86 a share for 2000 and $2.08 a share for 2001, or 12% growth.

Remember Buffett's advise: "Buy a business, not just a stock."

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