The results announced today were terrific since
NABI not only beat Street estimates by .01-.02
(which is more than 10%), they also announced
certain tax benefits from NOLs (prior years net
operating losses). The conference call was
entirely, and I mean entirely, upbeat. NABI is
significantly increasing sales of specialty plasma,
which generates 30% margins as opposed to source
plasma which generates 10% margins. NABI enjoys
margins in excess of 50% on its immunotherapy
products. The CEO further said that there is an
additional $27 Million (net after tax break) in tax
benefits left to take in coming quarters from
remaining NOLs. I asked Mr Gury 2 questions (which
may reveal the identity of The BayWatcher for those
who were listening): (1) whether NABI's supply of
plasma is totally commited for FY1997 to which he
said YES and (2) whether analysts' earnings
estimates for FY1997 were reasonable to which he
said they were "entirely reachable." The CEO also
said there would be an analyst meeting in Boca
Raton, FL on Friday March 14, 1997. I must say
that I am entirely impressed with David Gury and
NABI's turnaround. When analysts and mutual fund
companies compare the results just announced of .10
excluding tax benefits and .28 incl tax benefits
with the results of .03, .05, .04 in the 3 prior
quarters plus several negative quarters during FY
1995, the results are rather striking. Hell, they
are GREAT! I'll say it again, G-R-E-A-T!!!
Analysts from Lehman Brothers, Buckingham Research
and Raymond James asked questions and received
positive comments from Mr. Gury. I m sure all
analysts covering NABI will reiterate BUYs tomorrow
and the lonely fellow who had a hold will have to
join the crowd. Regardless of what happens
tomorrow, the positive momentum is sure to continue
into the high teens. |
