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Technology Stocks : Healtheon Corporation (HLTH)
HLTH 0.1200.0%Sep 10 5:00 PM EST

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To: Frank Williams who wrote (286)10/23/1999 3:45:00 PM
From: Elmer  Read Replies (1) of 861
 
Pushing back earnings may be due to the huge amount of accounting work associated with the merger. I think that the stock may rally short term for two reasons. First, the exchange ratio could change if the price stays below $38 for ten days before the deal closes. I don't think the Kleiner Perkins people want that to happen and they have influence with the investment banks and analysts. Second, the Company will need additional financing to fund the WebMD TV advertisements. Investment banks want the business so don't be surprised if the stock gets a bunch of upgrades after earnings (assuming they are good). But all bets are off if revenue growth isn't strong.
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