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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: jackie who wrote (8135)	12/29/1998 8:39:00 PM
From: aknahow	Read Replies (2) \| Respond to of 17367

Gosh, I'm glad I called, if I had not I would have thought the vote to change domicile had changed. m I will never understand why XOMA fails to make p.r. announcements about certain things. M. Murphy did not think change of domicile was a big deal. He is wrong, IMO. It is very important, even understanding that approval, sales, and profits must come first. On sales of $100 million outside the U.S. with a gross margin of 50% and a net margin of 40% a tax of 20% would be $8 million. But if the domicile change results in a 10% tax we are looking at $4,000,000 of taxes or $4,000,000 less. In this example it would take $20,000,000 of additional sales to generate that type of income if a change in domicile had not been made. Yes we will need real information to see about what actual tax saving accrues. I would expect XOMA to generate such information so they could go back to shareholders and explain why the decision of management and shareholders was wise. It would also help build confidence for other management proposals. Sure something like this will take years to do but in my mind it is worth thinking about to assure the data is available for future use.