[CANSLIM] PDCO

From: Chazmoore@aol.com
Subject: [CANSLIM] PDCO
Date: Sat, 10 Aug 2002 15:44:00 EDT
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I have decided to post my short write up on this company. Our investment clu=
b=20
often corresponds by e-mail so we can share new prospects between meetings.=20
If someone in the club comes up with something constructive I will pass it=20
along to you. Let me state that we probably will not buy this company stock=20
simply because of market conditions. On the other hand companies who are=20
hitting new highs during this bear market make good prospects for the future=
.

Patterson DentalCo. (PDCO)
(August 9, 2002)
=20
Business Operations:
=20
This company distributes dental supplies and equipment todentists, dental=20
laboratories and institutions in North America.
=20
Fundamentals:
=20
With no debt and a 21% Return of Equity, this company is ingood financial=20
health. IBD gives it a 95 EPS rating and an A SMR rating. Thecurrent Relativ=
e=20
Price Strength is a strong 91 and the A/D rating is B. With acurrent trailin=
g=20
P/E of 35 it is trading near the top of its historical P/Eratio. Mutual Fund=
s=20
own 25% of the company and management owns 11%. All of thelast four quarters=
=20
have shown EPS increases exceeding 20%, with a 29% increasereported in April=
=20
2002. The next earnings report is due August 23rdand is expected to be .36 a=
=20
share, a 24% increase over a year ago.
During the past three years the company has repurchased552,000 shares of its=
=20
common stock.
=20
Technicals:
=20
For the last two years this company has shown steady stockprice growth in an=
=20
ascending base pattern, reaching a high of $53.47 on June18, 2002. This was=20
followed by a sharp decline ending on July 11, 2002 at$41.60.Since then the=20
price has been moving back up and now stands at about$48.00, some 10% below=20
it=E2=80=99s previous high. The sell off was probably due toadverse market c=
onditions=20
since nothing negative has been reported about thecompany.
=20
On August 8, 2002, the stock broke out of a Double Top Point& Figure=20
formation, typically a buy signal. A look at the price/volumechart shows=20
increasing upward volume pressure and the beginning of a roundedbottom and=20
formation of the right side of the cup. If true, the cup lip shouldemerge=20
within the next two weeks.
=20
Purpose:
=20
The purpose of this report is to alert members of a possiblebreakout and to=20
solicit your comments.
=20


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<HTML><FONT FACE=3Darial,helvetica><FONT  SIZE=3D2>I have decided to post my=
 short write up on this company. Our investment club often corresponds by e-=
mail so we can share new prospects between meetings. If someone in the club=20=
comes up with something constructive I will pass it along to you. Let me sta=
te that we probably will not buy this company stock simply because of market=
 conditions. On the other hand companies who are hitting new highs during th=
is bear market make good prospects for the future.
<BR>
<BR><P ALIGN=3DCENTER><B>Patterson DentalCo. (PDCO)</B>
<BR><B>(August 9, 2002)</B>
<BR><B> </B>
<BR><P ALIGN=3DLEFT><B>Business Operations:</B>
<BR><B> </B>
<BR>This company distributes dental supplies and equipment todentists, denta=
l laboratories and institutions in North America.
<BR>=20
<BR><B>Fundamentals:</B>
<BR><B> </B>
<BR>With no debt and a 21% Return of Equity, this company is ingood financia=
l health. IBD gives it a 95 EPS rating and an A SMR rating. Thecurrent Relat=
ive Price Strength is a strong 91 and the A/D rating is B. With acurrent tra=
iling P/E of 35 it is trading near the top of its historical P/Eratio. Mutua=
l Funds own 25% of the company and management owns 11%. All of thelast four=20=
quarters have shown EPS increases exceeding 20%, with a 29% increasereported=
 in April 2002. The next earnings report is due August 23rdand is expected t=
o be .36 a share, a 24% increase over a year ago.
<BR>During the past three years the company has repurchased552,000 shares of=
 its common stock.
<BR>=20
<BR><B>Technicals:</B>
<BR><B> </B>
<BR>For the last two years this company has shown steady stockprice growth i=
n an ascending base pattern, reaching a high of $53.47 on June18, 2002. This=
 was followed by a sharp decline ending on July 11, 2002 at$41.60.Since then=
 the price has been moving back up and now stands at about$48.00, some 10% b=
elow it=E2=80=99s previous high. The sell off was probably due toadverse mar=
ket conditions since nothing negative has been reported about thecompany.
<BR>=20
<BR>On August 8, 2002, the stock broke out of a Double Top Point&amp; Figure=
 formation, typically a buy signal. A look at the price/volumechart shows in=
creasing upward volume pressure and the beginning of a roundedbottom and for=
mation of the right side of the cup. If true, the cup lip shouldemerge withi=
n the next two weeks.
<BR>=20
<BR><B>Purpose:</B>
<BR><B> </B>
<BR>The purpose of this report is to alert members of a possiblebreakout and=
 to solicit your comments.
<BR>=20
<BR></P></P></FONT></HTML>

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