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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (11413)	12/14/1997 9:03:00 AM
From: Zeev Hed	Respond to of 18056

Bonnie, MRK is trading in the middle of its PE range right now (I think that historically the PE range has been between 15 to an extreme of 40), now it is 24 times this year's expected $4.5/share), a little rich (and that is why I wrote covered July 75 calls), and please go ahead and short it, it could very well go down to the low 80 and even break to the low 70 in the next bear move. All you need for that is a little stronger dollar, some little health care scare that Hillary could provide, and an article restating that six seven of their leading drugs are coming off patents. As for TEVIY, I think the weakness is political, but I just cannot estimate when this political cloud will be removed. Last, the chart really stinks right hear, since it has broken down. It has the same PE as MRK but the stability of earnings and earning growth is not as strong as in MRK, of course, because of its smaller base, any monster drug that they come up with, might have a much greater impact than a similar drug by MRK. Zeev