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Biotech / Medical : Novacare (NOV) breaking out... -- Ignore unavailable to you. Want to Upgrade?

To: Machaon who wrote (190)	1/27/1998 12:59:00 AM
From: Todd D. Wiener	Read Replies (2) \| Respond to of 420

Bob- NOV's outstanding shares are still 65 million. By selling ~23% of NCES to the public, NOV allows NCES to make acquisitions of PEOs without using NOV stock. The only way that an NCES IPO affects earnings for NOV is that only 77% of NCES' revenues and income are reported by NOV, whereas 100% was reported before the IPO. But the number of shares outstanding for NOV didn't change at all. Another benefit to NOV is that for each $3 that NCES stock rises, NOV's stock becomes worth ~$1 more, due to its ownership of NCES. NCES used its cash from the IPO mainly to repay debt to NOV. Todd