Thermo Electron went up too far too fast. In 1996, it peaked out at just over $44. TMO was overvalued at 36 x 1996 earnings, 21.5 x cash flow, 3.8 x book. For those of you who bought at this time, you've suffered as earnings caught up to the share price.
TMO is fundamentally in fine condition and is a bargain under $38/share. TMO is cash rich and acquisitions should be forthcoming. This is a fabulous company that always delivers good earnings. I look for a breakout in the near future and will add to my position (full disclosure) on weakness.
on this thread may be a contrary indicator. The tone of the posts here is decidedly one sided to the negative. No doubt Wall St. is influenced by factors other than pure research, but if you look at how analysts feel about this company, one would think that at least a small percentage would get it right. Internet slamming can be motivated by dubious motives as well. Long and proud.
raised have for the most part been done with merit,thoughtful analysis and substantiation. I am also long the thermo group, but I don't think its about pride. For example,the issue of thermo voltek goes to the credibility of management. When tvl trades at $12 and management assures shareholders as they did on the conference call and at last year's thermo conference,then a buyback at $7 is a breach of the faith and trust investors have placed,particularly in the chairman of tmo (whom I have personally a high regard for). But the issue is not about pride or personal esteem,its about the bond with minority shareholders that has been broken...but that might still be repaired over time thru the parent company's deeds and the subsidiary performances. The tvl offer is a setback that could presage other future repurchases that might precipitate more shareholder lawsuits;fighting with minority shareholders is not in the best interests of the spinout strategy.
You are correct. TMO is one of the great growth companies. It is hard to find a stock that can grow earnings 20% a year for aprox. 12 years. It is now undervalued and a good buy. It may get down into the high 20's, but I believe it will have to be a down market to get it there. Using a simple pe for buying/selling is rewarding with this stock. Good investing, John