Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: hamishrose One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5655  
Subject: Re: Pall Corporation (Long) Date: 11/3/2002 4:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2

yofluke,

My initial reaction is negative, but of course you can try to convince me!

Their earnings seem very lumpy for what I would have thought would be quite a stable business. Certainly their top line looks quite good with slow, steady growth. What's going on with the bottom line?

They have a lot of debt and if the 6% you mentioned above is the interest rate, it sounds as if they don't have a great credit rating. It seems as if they paid a lot for FSG, although they may well have special insight. Do they have a track record of getting the most out of acquisitions?

The cost of options sounds quite high, although that isn't such a worry here since the share price hasn't gone anywhere for the last decade.

I certainly agree that a p/e of 30 is too high. Personally, I wouldn't be interested (at least on an initial perusal) unless the p/e dropped close to 10.

Hamish Rose
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Berkshire Hathaway

Brookfield Asset Management
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement