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Biotech / Medical : ABR Information Services (ABRX)

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To: Toby Zidle who wrote (99)12/12/1997 6:19:00 PM
From: Jim Mac   of 156
 
ABR's EPS growth rate has rapidly decelerated from 121% down to yesterday's 46% in a few quarters. Yet ABRX is still trading at 54 times trailing earnings. Sure they have a lot of cash, a high current ratio, and no debt, but let's face it: ABRX has been overpriced for a year, and remains so.

Although the business is doing very well, and active employee benefits administration (the big money down the road) now accounts for almost half of revs, I wouldn't touch ABRX until it drops to around $15.

There's a difference between a great company and a great stock. ABR is still a great company, but the stock is still overpriced.
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