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No. of Recommendations: 1
This is the first time i have completed a Rule Maker Ranker
Spreadsheet. Would someone care to look this over and tell
me if i did this right?



Donald,

I just took a look at your spreadsheet, and it looks pretty accurate. I would only make the following comments about your numbers:

1) I noticed for JNJ that you included "Acquistions of Businesses, net of cash required" in the Capital Expenditures line. Depending on who you ask, you will get different opinions on whether to include this item or not. My personal opinion is to not include it, since it can have such a dramatic effect on the numbers (depending on the size or number of the companies that were acquired).

2) You might want to use the pro-forma income statement for FY 2000 for JNJ, since their reported net income was lowered somewhat due to $54 million worth of "purchased in-process R&D". Since this item is a one-time charge, I would feel safe in excluding it from the calculations. If you look at the following link, it gives you a breakdown of what the numbers would be if the one-time special charges were removed for FY 2000:

http://www.corporate-ir.net/media_files/nys/jnj/reports/financialsQ400.pdf

3) Pfizer's net income in 2000 was reduced considerably due to special charges relating to the merger with Warner-Lambert. Therefore, I would use the pro-forma net income in this case as well. You can get the pro-forma income statement for FY 2000 from the following link:

http://www.pfizer.com/pfizerinc/investing/annual/earnings/2000Q4earnpr.html


I'll admit, I didn't really look at the Proctor and Gamble numbers, so I'm not sure if they are right or not. I'm starting to get kinda lazy here in my old age. :-)

Anyway, hope this helps.

the LanceMan




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