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Biotech / Medical : King Pharmaceuticals, Inc. (Nasdaq:KG)(Was KING) -- Ignore unavailable to you. Want to Upgrade?

To: Randi who wrote (10)	12/20/1998 8:07:00 PM
From: Dave K	Respond to of 61

I really like their "emerging" pharma business model. I'm impressed with their ability to squeeze more sales out of old products. However, I'm concerned by the debt burden. Better take another look at the credit facility covenants. They are adding yet another layer of debt (current terms unknown). A chunk of cash flow will be needed to service the debt. Also coming are capital expenditures, expanded sales force, etc. Are they leveraging too fast ? Consequently, I have not taken the time to do a detailed check on potential revenues. The debt is very unfortunate otherwise this could be a nice investment. Perhaps my focus is out dated given the way investors value companies these days. Think I'll sit on the fence for now. If any SI pharma analysts have a convincing argument to cause a jump, I would welcome your opinion. Dave