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To: Bonnie Bear who wrote (37283)4/29/1999 2:19:00 PM
From: re3  Respond to of 86076
 
now you've joined the put-on club , Bonnie <g>

Howard



To: Bonnie Bear who wrote (37283)4/29/1999 2:27:00 PM
From: John Pitera  Respond to of 86076
 
Bonnie, TSCN analyst likes your MCK idea--Options Watch Apr 29 1999 11:48AM CST Archives...


A Trade for the Gambler In All Of Us, Calls on McKesson (MCK)...
by Paul Anthony Thomas
Contributing Editor

Investors trampled McKesson (MCK) on April 28, for no really good reason. If we look at a 10 year chart of this company, there is no reason to believe that it will not trace above 60 within a year. The positives about this stock are:

- Management is not afraid to close/sell marginal operations,
- Positive Revenue Growth since 1996,
- Recent acquisition of a large medical records company,
- Market capitalization that still exceeds $8 Billion!,
- 1300 Institutions owned stock in MCK,
- A Price to Earnings of 48,
- MCK Pays dividends,
- MCK is diversified in several segments,

Some of the negatives about this stock are:

- MCK are swallowing a big acquisition
and it will take a little time to digest,
- P/E is still slightly above the industry average,
- The cummulative debt currently being carried is
an unknown since the acquisition in 1/99.

Being a sometimes contrarian, I see this mis-statement of earnings as a small hickup in an otherwise stellar 5 years of growth and good management (this team knows how to manage debt). Investors looking for a good rebound opportunity should consider the November $40 or $45 Calls on MCK.

Investors can learn more about Options Search Strategies from publications available in the books section of Telescan Book Store. Check it out!


wallstreetcity.com