Two hot tips: 1. Watch John Hatsopoulos who will be the special guest on Nightly Business Report on PBS tonight (June 10). He will discuss the TMO spinout strategy. 2. Place an order for a few shares of TMO today. Still on sale for just $35. Look for a nice up move tomorrow after this television appearance. (Also, the recent Merrill Lynch upgrade to short-term buy will get the stock back to $40 by the end of this month.)
One more bulletin - Thermo Electron is an instrument company - pure and simple. Don't worry about the much-discussed disasters in cogeneration, remediation, and hair removal. These are amusing side-shows that have nothing to do with the core instrument business which is growing at an impressive rate and will continue to do so for many more years.
When he was on NBR he mentioned that he will be focusing on acquring comapnies that are focused on diagnostic tools for healthcare industry and CAPR is one of those companies that an has breast cancer detection technology (AURORA)which alredy has FDA cleareance but it taking forever for the comany's current management to bring this to market?
... in public representations. If tmo is simply an instrument company then all of the "DUMP THE JUNK" recommendations on this bb should be implemented...divest the entire ttt,tmd and tkn group minus perhaps cardio and trex medical. Its about being able to trust a ceo who touts fibertek at the miami conference while he's dumping his personal position at $19 and change. Its about the credibility of his representations with respect to tlz, a company that was supposed to dwarf tmo. If TMO can't be trusted with its spinoffs why trust them in their core business? After all,the success in instrumentation can be directly attributed to mssrs smith &lewis. Maybe mr hatsopoulos will explain to nbr's audience why 19 of 21 spinouts are down in 1998...coming off a horrendous performance in 1997 and the second half of 1996? To think that a money market fund would have yielded a better return than the vast majority of spinouts with three exceptions in an unprecedented bull market for the past three years should also be explained. How 'bout it ceo? Explain why so many spinouts are below ipo,illiquid,and still heading south despite massive buybacks by tmo in a great bull run? TMOs spinoff strategy has been a bear market for minority shareholders;and despite strong buy recommendations from everyone and their brother tmo is struggling to reflect decent fundamentals because institutions don't trust the banking analysts who were for the most part dead wrong with the spinoffs...most analysts covering tmo have lost their credibility too. And what the ceo should also explain to the investment community is why thermo can afford lucrative bonuses and options for the insiders which have continued unabated during a period of gross underperformance,after all the dow is only up 3,000 + points,while minority owners continue to suffer. The performance of spinouts defies the rationale which in part states "we can invest your money better than you". Not so;read the tape over the past four years. GE,pfizer,home depot,medtronic,schering plough,nations bank,waters and pkn,bristol meyers and nearly every great growth story in America all pay DIVIDENDS. WHY CAN'T THERMO?
If you feel thusly about the company, then by all means please sell your shares. I, or someone of like mind, will be happy to take these shares off your hands. If you really have convictions, please by all means short the stock...it will only provide the potential for more buying power when the stock rises in the future. TMO is a great trading stock - plain and simple.