Trinity Biotech (TRIBY) Message Board

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Biotech / Medical : Trinity Biotech (TRIBY)

TRIB 0.900

-2.8%

10:47 AM EST

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To: Ron Luhmann who wrote (9937)	8/1/1998 6:34:00 PM
From: dowman	Read Replies (2) of 14328

Let's see, I might have a few answers for you. The volume peak of 4 months ago might coincide with the self serving March 1998 "press release" about new insider purchases which actually took place in the previous fiscal year. That is always a good way to build shareholder trust. As to the price of the stock, keep in mind the market will adjust downward the value of the earnings of a company that pays no taxes (whether as the result of tax losses or foreign domiciled). So adjust Triby's earnings down for a 38% tax rate then apply a multiple to guess at a valuation. Elan, a highly successful drug delivery company domiciled in Ireland, was in the past penalized with a lower P/E rate based on "equalizing" tax rates for a fair comparison. So let's do the math. EPS 50% higher this year means .09, but let's round to 10 cents and assume a domestic tax rate of 38%, thus "fully taxed" EPS of 6 cents. That means a p/e of 33 times this years "fully taxed" earnings at todays price. By the way, I think it is smart for Ireland to establish low corporate tax rates to draw capital and jobs. But Wall Street will "adjust" that tax rate when those earnings are trading on the American exchanges

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