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Biotech / Medical : Bio-Reference Labs (BRLI) -- Ignore unavailable to you. Want to Upgrade?

To: Sol Rosenburg who wrote (210)	11/25/1997 12:54:00 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 223

SR--Watch for a move to the $3 level, for starters. All you have to do now is wait. Where else in this overvalued market can you find something as undervalued as brli? And that is why it sits, for now. People aren't looking for value, they are looking for the momentum and greater fool ride. That will change, 'cause everything changes.

To: Sol Rosenburg who wrote (210)	11/26/1997 9:57:00 AM
From: catman	Read Replies (1) \| Respond to of 223

Did anyone notice the amended 8K filed 11/20. It restates the 9 month 1997 and FY 96 Income statements and the 7/97 Balance Sheet to reflect the sale of GenCare. On the balance sheet, liabilities dropped $2.7 million while Shareholders equity increased $3.2 million, as management used much of the proceeds to pay down debt. On the Income Statement, Gencare accounted for 7.3% of revenue in 1997 and 6.2% in 1996. Restated EPS though dropped from 0.15 to 0.07 for 9 months 97 and from 0.10 to 0.08 for FY 96. Seems as though Gencare was an important, and growing, part of BRLI's earnings if not of sales. This would explain the higher price they got for GenCare. What does this mean for BRLI going forward? I have to wonder why they would sell such a profitable part of the company. It has higher growth, gross margins (72% in 1997) and profit margins than the core business (3% vs. 1.7%). Why sell this off? Does management feel that they can buy something better? Tough to beat 72% gross margins. Any comments? Mark