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Biotech / Medical : neog - Neogen's E.Coli Test adopted by Japan
NEOG 6.045-1.9%9:38 AM EST

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To: Steve Lokness who wrote (357)9/9/1999 11:14:00 PM
From: Kramer  Read Replies (2) of 441
 
Anyone should be able to see that a 16 cents estimate is irresponsible. 16 cents after taxes compared to 13 cents not taxed? That would be a 100% EPS growth!! There is no reason to believe neog could have grown internally that fast last quarter; to accomplish that they would have needed that legislation to have passed in Washington and didn't do so yet. As a result I expect this quarters earnings release to stand on its own merit, no matter what some foolish analyst predicted based on false information. We both know where the down side risk is and its not far from here; so why would anyone panic out at these levels? BTW, did you see that management is proposing simple anti-takeover measures? That's because they know their company is a very tasty morsel at these levels.

I don't know anything about Mr. Pounds, but apparently he must see that neog has the fundamentals and growth that make it a real bargain. All that management needs to do is get that cash to work and we will be seeing those teen prices again. BTW, did you notice the authorization to issue more shares in the proxy? Hmmm...I'm thinking maybe Jim and Lon got their eyes on some pretty good sized acquisitions? Hmmm...guessing that a market cap approaching $100 million must be their near term goal?

Neog will make the right deal(s) and we will make it back to the teens and beyond.

Steve, ya know you can't have it both ways. You ask management management to cough up investor information and they did by telling us about three possible acquisitions. But then when the deals fell through, as is not uncommon, you beat them up for telling us what was going on in the first place. It hurts us all by posting your frustration.

Did you also notice that a bunch of management's options could expire worthless, because of the stock price? Now I ask you, who has a greater incentive to get the stock price back to fairly valued? You or management?

P.S. If I were you I would be taking some of my sdix cards off the table. Don't get too greedy, you must have a nice profit, sell at least half.
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