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Biotech / Medical : PHP Healthcare

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To: Ontherise who wrote (2)11/14/1997 5:27:00 PM
From: Jim Mac  Read Replies (1) of 136
 
Kevin, that sounds great! Sounds like you have the low-down. I got the same numbers by assuming PHP will have 4% net margin on $400M revs, divided by 13M shares. A P/E of 25 on more than 100% Q-Q EPS growth seemed reasonable, since PHP is a recession-proof company with LT contracts, and more projects in the works. Also, if they pay off that debt within a few years, book value may approach $13 (including goodwill, which I'd prefer to ignore), giving the stock a nice "floor".

I hope you can buy more between $10-15. I'm hoping for some end-of-year tax selling in order to buy more closer to $10.

This looks like a winner!

Take it easy--Jim
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