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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (10841)	8/7/2002 3:16:55 PM
From: Bruce A. Brotnov	Respond to of 16631

PWAV must have had impressive conference presentations the last 2 days as the are up 20% in 2 days. Volume pretty heavy also. Go Market! Bruce

To: Dave Gore who wrote (10841)	8/7/2002 3:17:00 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

CCRN -- More than 5 points below its 52 week low and beat expectations and affirmed guidance. What is happening to common sense in this Market? Year Ending 12/2002 1.05 Year Ending 12/2003 1.32 Long Term Growth 24.1 %

To: Dave Gore who wrote (10841)	8/7/2002 3:23:33 PM
From: jolox	Read Replies (2) \| Respond to of 16631

Dave; OVER REACTION ?? In an intra-day note during the company's conference call, Merrill Lynch attributed the stock drop to a "shifting mix between price and volume," and it noted that Cross Country's management believes volume gains will moderate to around 5 percent in the third quarter before re-accelerating in the fourth quarter. The firm, which reiterated its "buy" rating on the stock prior to the conference call, said it believes this sell-off is overdone. It justifies this opinion by pointing out that the stock is now trading at 12 times its anticipated 2003 EPS estimate, well below its historical valuation at roughly 25 percent the long-term earnings growth rate. "Once investors digest the short term shift in the revenue growth mix, we would anticipated that the shares will stabilize and rebuild momentum," Merrill told clients. "We believe that the shares can rebound to the low $30s over the next 12 months." Noting the slight miss on the top line in the latest quarter, CIBC still reiterated its "strong buy" rating on the stock, saying that Cross Country's pricing and margin strength give the firm high confidence in its existing estimates. However, one comment in CIBC's note may explain some of the panic surrounding the stock. The firm said it anticipates Cross Country will address concerns circulating about its predecessor company's sales by W.R. Grace and "how that may relate to ongoing asbestos litigation at that company." It notes that another company, Sealed Air (SEE: news, chart, profile), was recently "dragged back into the mire" by its past dealings with W.R. Grace, but said it doesn't expect a similar scenario to play out here. "Our sense is that the structure of the Cross Country sale was such that no liabilities exist, but further details by management would firm up this opinion," CIBC said in its research