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Biotech / Medical : MCAR -- Ignore unavailable to you. Want to Upgrade?

To: Bisset who wrote (48)	10/21/1997 9:42:00 AM
From: Ray Desori	Respond to of 467

Hi John ... Thank you for your question regarding 'cannabalizing' earnings ... Though I've looked into the matter previously, I'm going to take some time to look into the company's financial picture further before I provide with any 'detailed' analysis of what I think will happen. Two conclusions I've come to already are: a) the company's real year of growth is 1998 and; b) MCAR will NOT be eating into it's earnings in an effort to grow! Again, I'll provide you with much more detail in a day or so ... stay tuned. Regards, Ray PS - I've also been hearing that the company will be opening more centres and may even be saying something this week!!!! I'v got my fingers' crossed on this ....

To: Bisset who wrote (48)	10/22/1997 10:42:00 AM
From: Ray Desori	Respond to of 467

Hi John ... You asked whether the company's expansion would mean that earnings would be eaten into. The short answer is 'NO'. The company's current cash-on-hand means MedCare has no need to dip into its revenues for operational or expansion capital in the upcoming year. When I last spoke to their office, they anticipated opening "one site per week" in 1998 and will "comfortably meet their expansion target for 1997". If MedCare intends to establish 50 sites next year, it means the company only needs $1.5 million to do so, and a basic operating budget of a few hundered thousand. With their current cash position (and with NO DEBT to service), MedCare can definitely afford the expansion. The 'clincher' though, is the earnings for 1998. Because the company will NOT be siphoning cash from its revenues in order to expand, every penny MedCare brings in through sales can be directly applied to its earnings. As such, to meet a target of .60 - .65/share in 1998 can be conservatively achieved. In conclusion, MedCare has more than enough cash to grow; has no debt to worry about; has no forseeable competition; and is in a massive marketplace. To see a more complete report, please go to my most posting preceeding this one.