HBOC...Buy in here? Message Board

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Biotech / Medical : HBOC...Buy in here?

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To: Jim Garrison who wrote (123)	7/14/1998 8:22:00 PM
From: John Carragher	of 341

Dow Jones Newswires -- July 14, 1998 HBO & Co. Down 11% On Acquisition Rumors NEW YORK (Dow Jones)--Shares of HBO & Co. (HBOC) sank 11.2% on very heavy volume due to speculation that the company may soon make an acquisition. The Atlanta health-care information systems company is the sector's leading consolidator. The acquisition rumors may have been spurred by the fact that HBO surprised Wall Street by reporting second-quarter earnings on Monday, a day earlier than expected. The company's earnings of 17 cents a share exceeded the First Call Corp. consensus projection by a penny. The dip in HBO's shares appears to indicate that investors are anticipating a transaction that is either dilutive to earnings or a drag on HBO's earnings growth rate, according to market observers. Completing a dilutive transaction would be out of character for the company because it tends to be very conservative with its share price, said CIBC Oppenheimer analyst Benjamin Rooks. He noted that all of HBO's recent acquisitions have been either immediately neutral or additive to its bottom line. Whether or not there is any merit to the rumors, Rooks said that HBO "is due" for an acquisition. Its last purchase was that of National Health Enhancement Systems Inc. in late December. HBO officials couldn't be immediately reached for comment. HBO's shares fell 4 1/16 to 32 1/16 on Nasdaq volume of 9.2 million. Average volume is 3.1 million. After a relatively active opening, trading volume increased again shortly after 1 p.m. and then ramped up dramatically during the last hour of trading. -By Louis Hau; 201-938-5240; louis.hau@cor.dowjones.com Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.

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