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

To: satish kamat who wrote (131)	3/15/1998 8:48:00 PM
From: GREATMOOD	Read Replies (1) \| Respond to of 220

Satish, In this week's Barron's, IBES has Matria earning $0.55 cents in '98', and $0.71 cents in '99'. That means that we are currently trading at less than 9X 1999 earnings! And the stock is even cheaper when you realize that these estimates do not include any revenues that Matria will get from the new Johnson & Johnson drug up for approval shortly, and these revenues could be significant! Further, these estimates do not include the approx. $8 MM to $10 MM dollars that Matria will recoup from the sales of the Adeza fFN test. Further, these estimates do not take into account the share buyback. When the buyback is complete, the EPS increases proportionately. If you place a modest 20 X EPS multiple on Matria, we're looking at a $14.00 stock by 1999 without the benefit of any of the 3 drivers listed above. GM