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Biotech / Medical : SangStat Med. (SANG) - 10 of 10 analysts say Strong Buy -- Ignore unavailable to you. Want to Upgrade?

To: Darth Vader who wrote (62)	1/23/1998 9:54:00 AM
From: F. Jay Abella, III	Read Replies (2) \| Respond to of 184

Hi All: I write this today. Would anyone here like to take a stab at modelling SANG as an R+D company rather than an operating company. Given the product pipeline and the cash, what should be the value of the shares now that H&Q thinks profitability is at least another year away? At today's westergaard.com:8080/Med/index.htm "Anyone want to try to predict the near term bottom for SangStat(Nsdq:SANG)? Shares of this institutional favorite fell $6.50 to $26.00 on volume of 2.47mm shares yesterday. Why? Because Hambrecht & Quist lowered its 1998 EPS estimate from $1.20 profit per share to a net loss of $0.36 per share. H&Q's analyst said she was too aggressive with estimates in light of recent product delays. OOPS! For H&Q to do an about-face from a 30x earnings multiple in 1998 to posting a loss of $0.36 on 16mm shares (almost $6mm), we think its present $26.00 pricetag is not exactly "in the ballpark" of where SANG might trade near term (watch, it will probably trade higher just to spite my reason). A request. Would anyone more familiar with this company than I wish to run a valuation of SANG based on our model westergaard.com:8080/Med/Valuation/index.htm? The institutional bioworld would benefit greatly from an accurate prediction of the bottom near term. Will publish the best response. FJA