USRX Message Board - Msg: 892897

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Technology Stocks : USRX

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To: Tulvio Durand who wrote (13698)	2/27/1997 1:19:00 AM
From: Fred Fahmy	of 18024

Tulvio, <<but we'll not see the 140 from USRX (nor the 80 from COMS needed to make it happen) by year end as you and I had projected>> I am not willing to concede this yet. Keep in mind COMS has already visited 80 once while USRX has never come close to 140. In addition, both have very similar forward looking P/E's. <<..the x2 monopoly may be compromised by COMS' ROK-Flex-chip connection..>> x2 will be healthy. If anything this is a blow to ROK. USRX's current technology and future development efforts will remain largely unchanged IMO. I can't see Cowell agreeing to anything less. I'm sure USRX will be acting very much as an autonomous division. <<...COMS' already announced shortfall in earnings and revenue for the quarter it completes on Thursday, 28 February>> This has already be built (over built IMO) into COMS current price. The market overrecatd to COMS "slow" quarter and they will probably overreact the other way in coming months. Competition will be tough but USRX will continue to carry their weight. I think COMS is being underestimated. This notion of COMS getting their lunch eaten is preamture at best in my estimation. Having said all that, I do think COMS gets the better part of the deal and I won't lie, I would have preferred to see USRX go at it on their own. But consolidation in this industry is a way of life and does have advantages. There will be synergies in the new company. Heck maybe some of that excellent USRX management can rub off and influence COMS. I think the new company will be a formidable CSCO competitor and will give current CSCO clients something to think about. All in all this will be very interesting. I think you may be too pesimistic is your assesment of things to come. I still trust in Cowell and co. and I don't believe they would have agreed to the current deal unless they thought it was in their best interest (which should be our best interest). Good luck, FF

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