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Biotech / Medical : HBOC...Buy in here? -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (146)	7/16/1998 4:50:00 PM
From: John Carragher	Read Replies (1) \| Respond to of 341

My understanding of the streets reaction is hboc attempted to take over McKesson a large corp which would have slowed earnings. It didn't happen but the street feels hboc has shown their hand and most likely there will be another large take over attempt (Why not cardinal health). hboc has gotten a lot larger and to continue to grow they need larger companies with high growth to merge and keep the growth going. Quite a few the investors don't feel hboc can continue earnings at the historic rate and are selling out. Now down some big bucks in the last few days is it a buying opportunity or will we go down further with more institutions getting out? I have considerable holdings in hboc and like the management. I think I will hold on and see what they may be up to.... Hopefully its as profitable as in the past. see ya John

To: Chuzzlewit who wrote (146)	7/16/1998 5:56:00 PM
From: dougjn	Read Replies (1) \| Respond to of 341

While the market reaction seems clearly overdone, it makes some sense to me. I think there is some concern that the beast we know and love was on the verge of possibly becoming something else. Medical management software company almost acquires a drug distribution company??? With much lower growth and margins. Deal is scuttled, apparently (or is it merely being somewhat renegotiated??) after leaks reveal that the Street hates the deal and tanks Hboc's stock. Makes you wonder what management is up to, no? Does this mean that growth prospects in their core market are drying up? Is there some other reason for the deal that is not immediately apparent? Are they starting to play mere classic roll up games with lower PE, lower growth and lower margined targets? (The lower PE is fine; the other two aren't -- they lead to inevitable slowdown and likely future crash.) Thoughts?? Doug