|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
NOVEMBER 1, 2004
By Gene G. Marcial That's One Safe Stock  Chemical biological masks, advanced combat helmets, and self-contained breathing apparatuses are some of the products driving strong sales at Mine Safety Appliances (MSA
), global leader in body protection gear it markets in 120 countries. The 90-year-old company "is benefiting from the focus on homeland security and domestic preparedness," says Elliott Schlang of institutional research outfit LJR Great Lakes Review. Mine Safety's homeland business is growing at a "phenomenal rate," says Schlang, who owns shares. Besides the billions the federal government is spending on the war on terrorism, he notes, only 14% of the $2.3 billion budgeted for states by the Homeland Security Dept. has been awarded so far. Firemen, police, and industry use Mine Safety's other wares, such as gas detection gear and air-purifying respirators. Its stock seems bulletproof, too, rising to 37 from 18 a year ago, reflecting compounded yearly earnings growth of 57% over the past five years. While that can't last, Schlang expects at least 15% growth and sees shares at 46 in a year. He pegs earnings at $1.90 a share in 2004 on sales of $830 million, vs. 2003's $1.31 on $696 million. In 2005, he sees $2.19 on $942 million. Richard Eastman of securities firm Robert Baird (it did banking for Mine Safety in the past year) rates the stock outperform, saying earnings will support share buybacks and dividends it has paid for 86 consecutive years.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  See Gene on Fridays at 1:20 p.m. EST on CNNfn's The Money Gang. Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version
