VCA Antech Inc. Message Board

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Biotech / Medical : VCA Antech Inc.

WOOF 3.125

-1.7%

3:17 PM EST

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To: FIFO_kid2 who wrote (33)	12/10/1997 10:59:00 AM
From: mattie	Read Replies (1) of 70

Have you read the 10-Q that came out a few weeks ago? Lots of risk in the stock over the next year or so. 1) Most of their growth is due to aquisitions - only 3% ROE. Their growth will be hindered going forward because of their high debt level. Note all the deals now are with debt, not stock. 2) The earlier deals that were done with stock are no good. The stock is well below the price when the deal was done - per contract VCAI has to give more money unless the stock price rises to 20.(small chance) 3) All of their book value is Goodwill from buying companies above book. The goodwill has to be amortized, which will lower earnings, and the company may have to write down some of this goodwill and take an accounting loss. Those are some of the highlights that stick out in my mind. I did sell my stock after reading the 10-Q and locked in a very small gain.

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