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Biotech / Medical : Colorado MEDtech, CMED

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To: Paul K who wrote (101)5/15/1998 2:01:00 PM
From: Edward Larkin  Read Replies (1) of 288
 
I don't see Vencor buying out CMED, it really doesn't fit into their core operations.

As for Vencor wanting to sell the stock, I guess there is some future risk of this, but the facts are that with 34% of the stock they would have to get the deal underwritten. In the past CMED has not taken on any substantial underwriter relationships since they don't need any money and generate cash like mad.

The Vencor scenario, even if I think it is unlikely, would cause a underwriter to get involved. With Vencor's stock worth near $35-40 million, it would be enough to get a medium tier bracket firm involved who probably would love to get a bunch of institutions pregnant with this situation.
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