NEH

Focusing on Medical Equipment

Boris, okay. Though my reply may not include the kind of response you are looking for because my investing style may be quite different. I first look at the ownership, ie, the original SEC filings, and follow it from there. I rely on qualitative research more than quantitative research, but also watch carefully all the valuation ratios and cash flow. I've had Exactech for almost two years and watched it plateau before.

- It lapped around the first plateau at $14-$16 before bumping up to its high of $29 and now its lapping around $27/$28.

- There is alot of family ownership, with a second generation on board, and I think they have and will show good stewardship.

- It's a profitable company that has avoided, for the most part, the current FDA investigation into sales practices that has plagued its peers.

- It is spurring growth through acquisition of complementary products/companies (a spine products company whose name I don't remember offhand) and has acquired a global orthopedics distribution facility, with an existing sales force, in France. They have obtained a $40M credit facility and growth will be accretive.

- They have just been named to the Russell 3000.

- I expect future sales to be healthy because of the aging population.

My expectations are not based upon the heavy quantitative research that the Seeking Alpha audience tends to favor, but based upon my own personal investing experience which is more intuitive. Sometimes I lose, and sometimes I win mightily. I don't follow the crowds. Ever. I look for smaller growth companies in specific sectors that I understand. I never invested in financials because I do not understand them well enough, and they are not directly asset-based. A company, even if highly leveraged, must be asset based. I look for good cash flow. Obviously I could go on and on but I hope this answers your question in part, if not in whole.