TRL Total Renal Care Message Board

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Biotech / Medical : TRL Total Renal Care

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To: wmj who wrote ()	3/15/1999 11:59:00 PM
From: Softechie	of 36

DLJ Report 3/12/99 TOTAL RENAL CARE HOLDINGS (TRL: $9.0625)+@++ 03/12/99 Preliminary Results of Board Meeting Generally Positive Earnings Per Share Old New P/E Ratios (FY:Dec.) 1999E $1.47** $ 6.2 1998A 1.22 7.4 1997A 0.69 13.1 Rating: BUY Change: None 12-Mo. Target: $low $20s We spoke with TRL management this morning regarding yesterday's board of directors meeting, and we have received some preliminary information. We believe the meeting was generally positive for the company. We anticipate that there will be a building of management infrastructure, focused on the finance and administration levels. The company has already decided to name a new Chief Accounting Officer. We are also expecting TRL to scale back its previous acquisition strategy for the year, setting a target of 4,000 acquired patients in 1999 (our prior expectation was 8,000). The company has conducted a large review of internal controls, including accounts receivable. Recent data has indicated January same-store treatment increases in the 7% range, giving us added comfort in our estimates of $0.34 for 1Q99 and a range of $1.40-$1.50 for this year. Even using the low end of the range, TRL is selling at about 6.5 times this year's EPS estimate. We continue to believe the stock is extremely attractive at current levels and we reiterate our purchase recommendation for investors willing to take some risk for the potential of significant appreciation. While there are several issues surrounding the stock, we believe concerns are more than well reflected in the current stock price. (11:00 AM EST)

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