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Biotech / Medical : Trinity Biotech (TRIBY)
TRIB 0.696-1.1%Jan 14 3:51 PM EST

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To: dowman who wrote (11165)12/6/1998 9:00:00 AM
From: FreedomForAll  Read Replies (1) of 14328
 
<As in your 30x scenario, remember to factor in the corporate tax rate of 38% on Trinity's earnings. That is the way any potential corporate acquirer would value this company. A shareholder, who is also buying the business, should use similar methods>

As a shareholder, I do not analyze the company in the same way as if I were buying the whole company and moving it to the US. Neither should any other shareholder. TRIBY is an Irish company and it derives benefits from the lower taxes. These benefits increase the market value.

As a shareholder, I hope other companies do use your logic for acquisitions, because it makes TRIBY less likely to be acquired, and an acquisition would not give me the ten-bagger that TRIBY can be if it stays independent.
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