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Biotech / Medical : PHARMERICA (DOSE) - Undervalued Growth Company -- Ignore unavailable to you. Want to Upgrade?

To: Jon Klaus who wrote (2)	10/16/1998 2:21:00 PM
From: Joe Dancy	Read Replies (2) \| Respond to of 24

I've got to admit that my Merrill contacts found this one for me - it has really been hammered. Several reasons it is cheap: they missed last quarters earnings by 2 cents and two firms (including Merrill) downgraded; the company is in the process of acquiring other companies and some of the revenue/earnings growth has not been quite as fast as expected; the company is a merger of two parts that only occured a year ago so exposure is limited - and one of those companies is now being investigated for Medicare billings (DOSE says it should not be impacted); also Medicare reimbursement procedure will change in 1999 but DOSE should be the low cost provider. The Merrill report, before the downgrade, is very positive. Downgrade really was for company missing the earnings - but the underlying story did not change. These small companies are risky, yet rewarding if and when they finally get their business running efficiently. As the second largest in the field, DOSE should be a player here. Then again, I've been proven wrong before. The article in the St Petersburg paper (link above) sort of tells the story as well as I could. Joe