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To: Bald Man from Mars who wrote (18894)	6/22/1998 3:10:00 PM
From: RAVEL	Read Replies (2) \| Respond to of 31646

SEE LAST PARAGRAPH =Colo MEDtech -2: Internet, Vencor Cited In Low Stock Price Dow Jones News Service via Dow Jones Atanasoff, Colorado MEDtech chairman and president, confirmed that the company is "looking for acquisitions." It has $10 million in cash and a $7 million line of credit from Banc One Colorado in Boulder. Arfmann, the company's chief financial officer, said he would have to "think hard" before using stock to make an acquisition at the current price of the shares. The price of the stock climbed from about 4 a share a year ago to over 10 earlier this year. But it is down now to about 6 3/4. Both executives said the decline was in line with stocks of other small companies. But Colorado MEDtech's stock price has suffered lately from Internet bulletin board comments linking the company to the problems of Vencor Inc. (VC), in Louisville, Ky. Vencor operates hospitals and nursing homes and is being investigated for alleged mistreatment of some patients. Vencor owns a third of Colorado MEDtech's shares and Colorado MEDtech has a $2.6 million contract to provide Vencor with oxygen-generating equipment. Ed Larkin, director of research at Spencer Edwards Inc., in Denver, said losing the Vencor contract would have only a "negligible impact" on Colorado MEDtech's earnings next year. Larkin said some institutional investors started buying the stock two months ago at about $9 and sold as soon as the price sank below $8. Steve Wing, research analyst at RAF Financial Corp., in Denver, likewise discounts the Internet messages. Wing expects earnings this year of 36 cents a share, including 12 cents this quarter. Next year he expects 48 cents a share. "I have a target price of $14 to $18" over the next 12 months, Wing said. Jan Curtis, a research vice president at Spencer Edwards Inc., said she is upbeat about the possibility of a contract to produce blood-testing devices for Gen-Probe Inc., in San Diego. The contract could add $20 million of sales for Colorado MEDtech over the next 18 months, she said. Her target price range is 12 1/2. to 15. John Vareka, research analyst at John G. Kinnard & Co., in Denver, has a 12-month target of 15 for the stock. Vareka said he thinks there's "some upside potential" in an agreement that lets Colorado MEDtech use software developed by another Denver-area company, Tava Technologies Inc., in a new product designed to eliminate Year 2000 bugs from biomedical devices in health-care facilities. -Tom Locke; 303-293-9294 (END) DOW JONES NEWS 06-22-98