Investing For Growth
Investing For Growth
by Robert Sheard (MF DowMan) LEXINGTON, Ky. (May 16): A small loss for the IFG holdings today. No major moves in any of the components, though, so let's move right to the news stories.
RoTech Medical <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ:ROTC)") else Response.Write("(NASDAQ:ROTC)") end if %> announced yesterday that it is proposing to offer a new issue of $100 million of convertible debentures due 2003 which will be convertible into common stock at the option of the holder at a price yet to be determined.
The company also may issue up to an additional $15 million of debentures to cover over-allotments in connection with such an offering, RoTech said. Proceeds are anticipated to repay short term debt, the company said. The Street was less than thrilled, dropping the stock a buck a share.
In a little bit of analyst guiding, Green Tree <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GNT)") else Response.Write("(NYSE:GNT)") end if %> Chairman Lawrence Coss told analysts that he's comfortable with 1996 earnings estimates of $2.16 a share but that he feels the consensus estimate for 1997 is too low at $2.74 a share. At the annual meeting, shareholders approved an increase in the number of common shares outstanding to 400 million from 150 million. In addition, Green Tree has 15 million preferred shares. The additional shares will be held in reserve for future use.
Medtronic <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MDT)") else Response.Write("(NYSE:MDT)") end if %> announced some development plans for devices to treat atrial fibrillation (an erratic and potentially dangerous beating rhythm in the upper chambers of the heart that afflicts about two million Americans). One such product under development is an arrhythmia management device which is designed to provide a range of therapies to sense and interrupt arrhythmias in either the upper chamber (atrium) of the heart or lower chamber (ventricle). Clinical evaluation is expected to begin within a year.
And finally, one of the Relative Strength holdings posted earnings today. The Gap <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GPS)") else Response.Write("(NYSE:GPS)") end if %> announced first quarter earnings totaled $0.28 per share versus the $0.17 posted in the first quarter last year. The First Call consensus estimate was $0.26.
Millard S. Drexler, president and chief executive officer said, "Our record sales and earnings are the result of strong performances by all our divisions, each of which earned more than in last year's first quarter. Merchandise margins improved at all divisions, the result of higher initial margins and less promotional activity than last year."
The Gap is also a Fool Portfolio holding, of course, so look for Tom and David's take on the earnings release in the Fool Portfolio write-up tonight. The Gap is also one of four cash-strong consumer stocks profiled by Tom in this month's Unconventional Wisdom column in Smart Money. Great portrait of a Fool painted in that piece. Don't miss it!
Transmitted: 5/16/96 | ||||||||
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