Re: [CANSLIM] Current Case Study - XRAY

From: Chazmoore@aol.com
Subject: Re: [CANSLIM] Current Case Study - XRAY
Date: Thu, 8 Aug 2002 16:17:00 EDT

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Mike: I'll take a crack at XRAY to get the ball rolling.
I agree that the fundamentals look pretty good, although I would like to know
more about 118% Debt to Equity ratio. My guess is that it has to do with
acquisitions because this industry is consolidating. (PDCO is another on a
buying binge.) You will note that the EPS are expected to grow 31% this year,
but only 13% next year. This may mean their next acquisition is still unknown
or in the planning stage.

Technically, I read this as a breakout even though the handle is short.
Unfortunately, the cup is V shaped, not the nice round bottom we like to see.
It hit it's low of $31.25 on July 22nd, just 18 days ago. I think this has
more to do with the general market than it does with this company. By that I
mean this is a defensive type of company; no showy new product, just
conservative management and growth. If you wanted to participate in a general
market recovery without a lot of risk, this would be a good place to park
money.

For what it is worth I checked another technical indicator that confirms $40
to $41 as a breakout price. However, all things considered, I suspect this
upward push will fade rather quickly.

There you go. No hind sight observation but a prediction.

Thanks for bringing this up Mike. Charley

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<HTML>Mike: I'll take a crack at XRAY to get the ball rolling.
 I agree that the fundamentals look pretty good, although I would like to know more about 118% Debt to Equity ratio. My guess is that it has to do with acquisitions because this industry is consolidating. (PDCO is another on a buying binge.) You will note that the EPS are expected to grow 31% this year, but only 13% next year. This may mean their next acquisition is still unknown or in the planning stage.
 
 Technically, I read this as a breakout even though the handle is short. Unfortunately, the cup is V shaped, not the nice round bottom we like to see. It hit it's low of $31.25 on July 22nd, just 18 days ago. I think this has more to do with the general market than it does with this company. By that I mean this is a defensive type of company; no showy new product, just conservative management and growth. If you wanted to participate in a general market recovery without a lot of risk, this would be a good place to park money.
 
 For what it is worth I checked another technical indicator that confirms $40 to $41 as a breakout price. However, all things considered, I suspect this upward push will fade rather quickly.
 
 There you go. No hind sight observation but a prediction.
 
 Thanks for bringing this up Mike. Charley</HTML>

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