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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (30546)	1/27/2000 8:07:00 AM
From: J. P.	Read Replies (1) \| Respond to of 50167

IQBAL, A few weeks ago you said that yields could go to 6.75%, that's a great call, because the top stands right about there, and it looks like yields are coming down for the moment. There's an inversion between the 30y and the 10y and 5y, so it may be an intermediate top, we'll see...Great call!

To: IQBAL LATIF who wrote (30546)	2/1/2000 7:02:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

<<Bulls on the stock point to extraordinary growth rates for recently released drugs as well as a strong research pipeline, perhaps the strongest in the industry. Drugs that currently account for about 1/3 of the company's sales -- Zyprexa (schizophrenia), Gemzar (cancer), Evista (Oosteoporosis/breast cancer), Reopro (balloon angioplasty/unstable angina), and Humalog (diabetes) -- are expected to grow 35% annually for the next three years. In addition, LLY launched an adult-onset diabetes drug, Actos, late last year which could prove to be a blockbuster. The only complication is Prozac, which faces strong competition. The fourth quarter sales decline for Prozac -- 13% -- was worse than expected, although the company indicated this was complicated by a change in wholesale purchasing patterns -- actual demand was only off 2%. Even including a continued Prozac slide, analysts estimate future growth at about 15% annually, only a little shy of the historical 18% record. Financially, the company is robust, with net margins last year of a record 27% and a return on beginning equity of 57%. Compared to your average company, these numbers are extraordinary -- which is why one might question whether this stock is worth a sub-market multiple of 24.8X this year's expected earnings.>>