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Biotech / Medical : IFLO is Breaking Out -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (900)	3/28/2000 9:49:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 1018

Jim, although I am as optimistic as you are, it's very difficult to project numbers from the data that has been released so far. Looking forward to seeing the product sales breakdown on the 10q/10k. I agree with your conservative 10% market share penetration for Painbuster and OnQ to start and also on your profit margin estimate. They are fair values. Once we have more concrete information we can apply sector comps and set a target price. Looking over the recent acquisitions and new relationships, we can see IFLO establishing a market niche and executing their plan. Looking at the Co.'s debt, we see a much cleaner balance sheet than its peer group. IFLO could be a very expensive buyout if given a valuation based on the avg. PE for its peer group. According to some sources the avg. PE is above 80, which would give IFLO a price around 50. reesegroup.com We could estimate a price target based on equivelent PE to projected growth rate. Staying conservative on this estimate, lets go with 30%, resulting in a stock price around 20. How about Price/Sales? IFLO is selling at 1/3 PS of peer group. Same discount on Price/Book ratio. Again, the same discount on Price/Cash Flow ratio. Using these ratios, values the stock at 18....right now. Institutional investment has been a tell-tale sign. As IFLO grows, so has the institutional interest. We're still at ground floor level. Hey, $7/share puts IFLO over $100 M Market Cap. Sergio