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Technology Stocks : Looking for info on IMNT -- Ignore unavailable to you. Want to Upgrade?

To: Gabor who wrote (471)	7/17/1998 10:08:00 AM
From: Rick Smith	Read Replies (1) \| Respond to of 484

I suggest you pray that there is no takeover... Look at the facts. 1. IMNT signed a financing partner so that they could more effectively sell to hospitals. Board of Directors don't want to sign a contract for millions even if it's going to save the hospital 10 times that. They would rather let it be done on somebody else's watch. But given an option to finance the deal...and they are hero's for coming up with such a solution. 2. The VA Hospitals are happy with the IMNT system. So much so that they continue to recommend it to the full system. IMNT is basically the only company even going after this biz at this point as most of the competition has decided to go after smaller projects that are equally lucrative, but easier to get. 3. The additional selling partners that have come on line in the past 6 months have just started to produce results. I believe, but obviously don't know, that we will see some of those results in the current quarter. 4. The Big Kahuna..the Department of Defense. The project is huge. And has a quick implementation schedule. If IMNT's competitors aren't able to effectively compete for the VA, I doubt they can do the work for the DoD. The total contract size of the DoD and VAH seems to be around $800,000,000 over 4 years. Add the other very significant hospital signings that are going on and the backlog, and I can make a case for earnings well in excess of $2/share. At a 25% PE multiple, which given these events should prove quite conservative, the stock will be a $50/share. I think if HBOC or some other suitor has an interest, they will have to come up with a lot more than $28/share, $38/share, or $48/share.