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Biotech / Medical : QDEL - Quidel more quick diagnosis
QDEL 21.08-1.3%3:59 PM EST

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To: Robert Busse who wrote (1077)8/28/1997 12:13:00 AM
From: Mike Relyea   of 1693
 
Great day and you can bet the best is sure to come.

Here's an interesting article in Barons I thought you all may be interested in:

interactive.wsj.com

Monday, August 25, 1997
New Value in Old Saw

Morgan Stanley analyst finds best performers have low P/E-to-growth ratios

. . . . The goal is to buy shares of companies possessing solid growth prospects without paying outrageous prices. Put simply, the ideal firm has a low P/E and a high growth rate. . . . What were the inputs? The P/E was based on the company's anticipated earnings over the next 12 months. And the growth rate was based on Wall Street analysts' estimates of earnings gains over the next five years, as compiled by I/B/E/S. . . .

Check out the stocks under the link in the article: Biggest Versus Most Attractive

interactive.wsj.com

Using Morgan's criteria to obtain the "P/E To Growth Rate" for Quidel based on Cleary Gull's research report by Jeffrey Holmes on Quidel:

Quidel's closing price last Friday: 4.0625
Jeffrey's FY98 earnings forecast: $0.20
P/E: 4.0625/0.20 = 20.3
Jeffrey's 3-5 Year EPS growth forecast: 40%

P/E to Growth Rate: 20.3/40 = 0.51

0.51 would make Quidel one of the best "Most Attractive" stocks on Morgan's list.

Mike
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