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Biotech / Medical : AHTC Corp (AHTC)-formerly Advanced Health (ADVH)

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To: aliveinsf who wrote (129)5/13/1998 2:49:00 PM
From: Tom D  Read Replies (1) of 371
 
Hindsight is 20-20.

Monday morning the stock opened strong and it looked like imminent good earnings and a price soon to be in the 20's. Now H&Q has downgraded because in the conference call the CFO has decreased the expected earnings in 1999 to $1.43, versus prior guidance of $1.55. Nobody seems to care that they opted to depreciate some intangible assets, reducing earnings about 10 cents per share this past quarter. It still looks like an average EPS growth rate around 20%. This implies a present value of $20 per share. With a share price of $13, that would seem like a "strong buy" to me. As Louis Riley noted, ADVH has "the best metrics in the industry" But I guess there is too much uncertainty about the predictability of earnings.

I don't know how much the New York Observer smear is affecting the stock price. The NYO is bizarre--if ADVH is not being investigated, I don't know what the NYO's problem is.

Best Regards,
Tom D
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