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Biotech / Medical : McKesson HBOC (MCK) -- Ignore unavailable to you. Want to Upgrade?

To: zebraspot who wrote (87)	5/25/1999 9:38:00 PM
From: Exciton	Read Replies (1) \| Respond to of 165

Thread. Would like to believe that this is a buying opportunity as some on the thread have suggested, but I have couple of questions. 1. In addition to the earnings restatements, what will be the impact of all of the lawsuits on MCK? Is there a recent precedent that we can use as a model? Am not experienced in holding stocks that the lawyers are attacking like pirahna, but it seems to me that the lawsuits may well affect earnings in a significant way as well. Occasional litigation is business as usual at most companies, but this is orders of magnitude beyond business as usual. I have never seen this many shareholder lawsuits brought in such a short time. 2. Even if the earnings hit is not that large relative to MCKs sales and total earnings, how long will it take for the company to rebuild credibility with the analysts? Months, years, never? Again, there must be some precedent from which we can draw lessons. As background, I have been a shareholder in HBOC for over four years and enjoyed the spectacular ride up. I was really skeptical of the merger and regret not selling as my gut told me to do at that time. My disgust is only compounded by the fact that lawyers are now controlling my fate on this one. It seems obvious to me now that HBOC new of their vulnerabilities on the accounting front when the merger was proposed and hoped to dilute the effect of the ultimate earnings hit by creating a larger revenue and earnings base. Many HBOC shareholders may remember that the original merger deal fell through because HBOC's board of directors was opposed to it even though the CEO was pushing it. A few months later, boom, the board thinks it's great idea. I have to wonder what made them change their minds--perhaps a long hidden accounting problem that couldn't be kept secret any longer?