Novacare (NOV) breaking out... Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Novacare (NOV) breaking out...

NOV 15.84

+1.1%

3:28 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DJC who wrote (73)	4/30/1997 5:39:00 PM
From: Todd D. Wiener	of 420

I thought that was a bit odd. Whatever. I agree that the report was very positive. I was expecting higher, not lower margins for NovaSource (which they didn't refer to by name) than those in Q2. That was the difference between my .17 estimate and the reported .16. I expect .18 for the 4th quarter, counting on a continuation of sequential revenue growth, with flat margins. Have you all noticed how large the debt is becoming? I calculated that if NovaCare were to offer 9 million shares in a secondary, they could raise enough cash to extinguish the debt. It actually would not be dilutive to earnings. On the contrary, this quarter would have yielded .17, if there were 72 million shares and no interest, as opposed to 63 million shares and $3.7 million in interest. While the earnings report was good, I've still not seen the balance sheet. I am concerned about NovaCare's ability to reduce debt, since it has been weighing heavily on earnings. For the first 9 months of this fiscal year, interest from debt amounted to about .16 per share. One more thing...does anyone know what are the "Elimination" portions of the PEO income statement? Todd

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next