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Biotech / Medical : FPA Medical Management - FPAMQ

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To: Gary Leger who wrote (487)5/11/1998 12:32:00 AM
From: Douglas V. Fant  Read Replies (2) of 1110
 
Gary, With 30% annual growth rate in earnings (let's cut that to 20% to be conservative however), if FPAM steered analysts to reduce earnings estimates to $0.75 this year, then it should still trade at or around $15/share....

And with the Humana and Aetna business just starting I would not be surprised to see FPAM's revenue growth rate go even higher than 30% annually for the next couple of years....

Unless FPAM shows up with some problem different than what Oxford or Medpartners already experienced, then the analysts can price in properly such issues- they have experience at it. That's why I am saying that all of the bad news is priced into this stock IMO....

Sincerely,

Doug F.
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