Bob,
Success! Thanks for the link. It's good to hear the "experts" are forecasting the market for home diagnostic products and monitoring devices will continue to grow.
My friend who has a stake in Quidel showed me the 31 July 1996 Dean Witter Health Sciences Trust portfolio. It has 80,000 Quidel shares. Dean Witter knows what we know - that Quidel's a good stock.
Bob, reference your reply #220 about the warrant holders. I think QDELW are the best buy. Consider this:
Assume Quidel's F2002E earnings are 20 percent above Pincipal's F2001E $0.081 earnings. $0.81 X 1.2 = $0.97.
Assume the 30 P/E Principal used in its analysis.
Then QDEL's F2002E price = $0.97 X 30 = $29.10
You've got $1,000 to invest.
QDEL's 21 Nov 96 ask = $3.6875
QDELW's 21 Nov 96 ask = $2.125
QDEL you can buy: $1,000 / $3.6875 = 271 shares
QDELW you can buy: $1,000 / $2.125 = 470 shares
Your profit if you bought common shares: (271 X $29.10) - $1,000 = $6,886
Your profit if you bought warrants: (470 X $29.10) - (470 X $7.50) - $1,000 = $13,677 - $3,525 - $1,000 = $9,152
Principal said its estimates didn't consider Quidel's pipeline products, and I doubt Principal considered the increased earnings potential for such things as Quidel's H. Pylori CLIA waiver, the Bare agreement, or possible flu test.
Mike |
