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Biotech / Medical : The Stock for 1999(Polymedica)PLMD(Medical Supply Co.)

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To: Abuckatatime who wrote (2822)9/4/1999 10:33:00 AM
From: Sam  Read Replies (1) of 3414
 
Well, this should improve liquidity! Cuts insider holdings by about a third. Removes debt and interest payments, improving profitability. Provides funds for acquisitions. Ends buy out speculation.

PLMD is currently in their second quarter of fiscal year 2000. Running this share number through the earnings model (not considering potential earnings increases from possible acquisitions) changes the results as follows:

FY.........OLD EPS.........NEW EPS....Fair value at 30 P/E
2000.......$1.16..............$.98.........$34.8125 to $29.375
2001.......$1.40.............$1.11.........$42.00 to $33.3125

Unless additional earnings can be generated from new non-dilutive acquisitions this changes PLMD from a value growth long term investment to a quality trading stock.

Lets all look at this news from various perspectives over the weekend.
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