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To: ted w. kentzel who wrote (6178)	1/6/1998 4:15:00 AM
From: jgideon	Read Replies (1) \| Respond to of 10368

You folks are forgetting to take the warrant call share dilution into account. Look at the Q3 press release and you'll see that BNGO has $1.866 M in net income for the first nine months of the year. A simple extrapolation of that figure (i.e., multiply by 4/3) gets you $2.488 M for the year. With 9.5 M shares outstanding after the warrant call, you get an EPS of 0.26 for 1997. Because Darlington is being treated as a pooling and was stated to be accretive, this is a low end estimate. To include Darlington, we add $4 M to revenues, which translates to about $1 M in net income (using a 25% profit margin - BNGO currently has a 26% profit margin). So let's estimate about $3.5 M in net income after the pooling. Again, with 9.5 M shares, we get about 0.37 EPS for 1997. That figure does not make any unusally optimistic assumptions. Now, give BNGO only a PE of 20 and you get a $7.40 price. A company growing this fast deserves a higher PE multiple, but that won't happen until the SC VGM situation becomes clearer. jg

To: ted w. kentzel who wrote (6178)	1/6/1998 8:21:00 PM
From: Vinnie	Read Replies (1) \| Respond to of 10368

Ted, Hope you're right about 97 eps. However, does this take the new shares (from warrant conversion) into account, or is this based on the previous shares outstanding? Either way, I agree that BNGO is currently undervalued with respect to assests and earnings. Vinnie

To: ted w. kentzel who wrote (6178)	1/7/1998 12:27:00 AM
From: WallStBum	Respond to of 10368

How much time is allowed for yearly financials to be filed? I believe it's longer than for quarterly (which is 45 days). 90 days after year-end. So figure end of March. 45 days for quarter end is correct. Remember BNGO got a few day extension to file 3rd Q so they could figure out the pooling issues. I would assume 90 days will be plenty of time for them to get there year-end numbers together even with all the pooling of Darlington and the warrant call dilution. But, I wouldn't expect any numbers for awhile anyways. dax