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Technology Stocks : Advance Paradigm (ADVP)

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To: snake who wrote (1)12/31/1996 10:29:00 PM
From: DD™   of 65
 
Snake:

I've been following this stock since it was featured in IBD on 12/4/96 @13 1/8. They are leading independent provider of pharmacy benefit management (PBM) services to health benefit plan sponsors. First Call is projecting 97 EPS @.33/share, and '98 EPS @ .70/share (a 112% increase). I don't know what the group PE is, but at a forward PE of 50, we're looking at a fair value of $35/share. This stock still may still be well undervalued in the low 20's.

I took a look at their most recent 10Q, and it looks as though growth is coming from client acquisition, not merger/acquisition. It looks as though we may have a relatively undiscovered "diamond in the ruff' here.

DD
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