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Biotech / Medical : Biomatrix (BXM) Looking Great

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To: John McCarthy who wrote (93)9/27/1997 5:15:00 PM
From: John McCarthy   of 569
 
I expect 3RD QTR. E.P.S. of $0.89 as follows:

(millions)

Q1-97 Q2-97 Q3-97 (Sept)
----- ---- -----
Licenses Fees:
Bayer 3.0 -0- -0-
Wyeth-Ayerst -0- 3.2 12.0
----- ---- -----
Total License Fees 3.0 3.2 12.0
Product Net Sales 2.2 1.8 2.0
----- ---- -----
Total Revenue 5.2 5.0 14.0
----- ---- -----
COGS 0.9 0.6 0.7
R&D 1.4 1.5 1.5
G&A 1.5 1.9 2.0
----- ---- -----
Total Costs 3.8 4.0 4.2
----- ---- -----
Operating Earnings 1.4 1.0 9.8
----- ---- -----
Other Inc. .2 .2 .2
----- ---- -----
EBT 1.6 1.2 10.0
----- ---- -----
Inc. Tax Prov. -0- -0- -0-
----- ---- -----
EAT 1.6 1.2 10.0
----- ---- -----
----- ---- -----
E.P.S .13 .11 .89
----- ---- -----
----- ---- -----

At Sept. 15 Short Interest was at 166,000 shares.
I think - but don't know - that it has increased a bit
since then - especially Friday.

What I don't get is, these earnings are sort of a lock.

And they EXCLUDE other license fees from other companies
that may or may not hit this quarter.

How could any one SHORT THIS STOCK AT THIS TIME?

I don't understand their premise.

If I am missing something, please advise.

Regards,

John McCarthy
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