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Berkshire Hathaway Inc. Message Board

  • invest_like_buffet invest_like_buffet Nov 24, 2003 2:41 PM Flag

    RPM___ ready for $15 +

    RPM .... nice dividend

    Forward P/E less than 12

    $2 billion yearly sales

    preparing to rise above 52 wk high of $15.90

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    • "Who, if anyone, has suggested that MRK might be a "Buffett play"?"

      Hi Ralph!

      That 'who' would be 'me'. I'm trying to spread nasty rumors. ;-)

    • Prez -

      Who, if anyone, has suggested that MRK might be a "Buffett play"?

      Merck seems pretty cheap now, despite the bad news and the frenzied coverage its misfortunes have aroused.

      It's hard for me to imagine there could be another shoe available to drop now, and if the MRK board loses confidence in Gilmartin and sends him on his way, we could see a stiff rally (I'm aware that Bossidy went out of his way today to signal that the board still has confidence in Gilmartin.)

      Happy Thanksgiving to all.

      Ralph

    • There's a really good (IMO) article about Merck in today's WSJ. It answers your question about Crestor.

      The article mentions that 4 of the 11 drugs that Merck was banking on failed late-stage trials.

      Considering that maybe, let's say, 25% of late-stage drugs don't beat the competition in trials, then what we are seeing could very well be explained by a relatively minor "perfect storm" scenario, the odds of it happenening perhaps being in the neighborhood of 1 in 100 in any given year. Certainly not a 6-sigma event by any stretch. Now that it's happened, the event has to play out, and there is at least 2 or 3 years to watch it flounder (I think).

      It does sound like a Buffett play to me, but the word "bankruptcy" hasn't been spoken of enough (yet).

    • okay. one last point Analysts have $18.50 price on RPM for end of 2003.

      So what is up with MRK these days? Sold mine in the summer right before earnings release.
      I think MRK is having problems in the "Statin" battles.

      Zocor vs Lipitor and now Crestor. Lipitor is the number 1 Rx in the country right now, and Crestor is nearly twice the drug that Lipitor is and less expensive. Crestor hit the market a few months ago. The most powerful statin.
      Question is why would a physician Rx Zocor when, they could Rx Crestor, and get better results ?

    • Think that you've already made your point(s). If we all promise to take a look at it (can't guarantee that we'll buy it) will you please stop repeating the same post?

    • >>RPM .... nice dividend

      Forward P/E less than 12

      $2 billion yearly sales

      preparing to rise above 52 wk high<<<

      Invest like Buffett-

      I have been a long term-maybe fifteen years-holder of RPM, and, frankly it's been a disappointment to me. It is now selling at late 1997 prices, so it has been in a long base. Maybe it'll catapult upward, but it's sure been dead money for a while and I think that you could find a better investment. But for both our sake, I hope that I'm wrong and you are right. (I have been reinvesting the dividends all these years, so there is some consolation in it having dipped and then recovered...but as Earl Weaver, Baltimore Orioles baseball coach once said, "You win more games with three run homers than you do with bunt singles.") Good luck! Alan

 
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