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Biotech / Medical : McKesson HBOC (MCK) -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (103)	7/2/1999 5:56:00 PM
From: Thomas C. White	Respond to of 165

For myself, I suspect it will trade between say 30 and 35 for awhile...they are certain to have to pay out an unusually hefty sack of bills in settling shareholder suits, since MCK is now openly stating that its senior executives engaged in fraudulent activities. Normally companies don't say something like this unless it's pretty grave. Analysts may want to see some visibility on just what this whole thing will cost MCK before they commit to upgrading. But there is a lot of pent-up demand in health care information systems biz, due especially to Y2K issues right now. And HBO still the market leader by a substantial margin. I suspect that the HBO side of the business will pick up dramatically in late '99 and early 2000, and analyst upgrades will precede this activity by a few months. Basically, at this price, you are getting HBO side of the business for free, and I think you can't beat that kind of price in the long run. Absolute best thing that could happen would be to buy at this price, then MCK admits they screwed up on the merger, spins off original HBOC back to shareholders. It may just happen...