Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Matria Healthcare (MATR) -- Ignore unavailable to you. Want to Upgrade?

To: Gregory Cole Brock who wrote (122)	2/21/1998 3:01:00 PM
From: GREATMOOD	Read Replies (1) \| Respond to of 220

Greg, I'm not an accountant, but the way it was explained to me is that the write-off each year is a result of the merger. When Tokos and Healthdyne merged to form Matria, it was a merger of unequals, and the amortization of Goodwill is a result of the companies not being equals. Your right about the taxes. I don't believe that Matria will be paying any tax as long as the amortization lasts. Matria is not a capital intensive business with a need for a large amount of cash on hand. It is a service business. They keep adding to their cash position each quarter. I read an estimate that they will have $1.00 per share in cash by the end of 1998. This is why I believe that a share buy-back program is very likely to happen. This buy-back will magnify the EPS, and make an already cheap stock even more ridiculously cheap. GM