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Biotech / Medical : ICN Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Paul Lee who wrote (803)	4/1/1998 11:44:00 AM
From: Tom Barnum	Read Replies (3) \| Respond to of 1029

At an exchange loss of about $27 mil, this is about 46 cents per share loss, dropping the projected earnings for this quarter to 1 cent. This $27 million will be written as a one-time charge for the quarter, but as long as the dinar is devalued, doesn't this mean an ongoing reduction in earnings? So what will happen over the next few weeks? It will probably ratchet down a bit more for a next few days until the volatility settles down. If the market weren't so giddy, I'd say that half the value of this stock, about $24, is based on existing business, and when a third of your business becomes break-even or unprofitable, I would look for a drop of $4 - $6. So, I would be looking for a drop to $42, or to fill the gap at $40 for a short period, probably after earnings are announced.