Anette, you asked me why I thought ABTX would get to ~$700,000,000.00. My answer is this: If ABTX is destined to gain at least $400,000,000.00 in unrealized revenues from further acquisitions, without competition setting in, then I expect ABTX to gain at least 50% of what is left, in the case that competition does come in. I know ABTX goal is 45% by year 2000. I believe they will do 45% IN 1998(UNREALIZED OF COURSE), leaving the remaining ~$700,000,000.00 available to gobble up themselves. I am conservative with 50%, so adding about $350,000,000.00 to the $400,000,000.00(they'll have by end of FY1998), leaves a total of about $750,000,000.00. I think their goal was conservative to not demonstrate too lofty expectations. That would be foolish-to say they could get it all, say, by 2002 or something. It is a nice goal, and attainable. Being ahead of schedule 12-18 months helps, no legal problems yet, credible acquisitions, make for a nice wall street story. All this is no guarantee, but my thought.
The rest you know(eps, P/E, price targets, etc.). You do not have to agree, but I would love to hear otherwise opinions.
As ABTX takes over 51% of the industry, does this make them a target of sorts for regulation, so as to not to become a manipulating monopoly? They have already spoken of raising prices(increasing margins for profitability) along with quality of the product in the future. Any thoughts on all this?
Love writing all those zeroes.
Mill |
