Can anyone explain the recent advance in price on this stock? For the last few months it was stable around 26 a share. I'm happy to see it on the move again, but what is the cause?

My guess is that it's 2 reasons: earnings will be coming out soon. They may even move them up to be announced before the Jan. 12 deadline. Mainly tho, I think it's because they are finally getting done what they've needed to do since the merger was announced and that's getting the price up to the $33 per share that the merger is based on. McKesson has also been moving up and that's probably what the HBOC move up is based on.

For those of us who have hung on, it's a welcome sign. I still haven't decided what I'm going to do ultimately as far as whether I want to be a MCK shareholder.

Carol

I think you've got it right - after all the merger news and crap that this company goes through, people are starting to remember that HBOC always makes its numbers and are jumping on for a little ride.

Hopefully its not a temporary move. I too have not decided whether to hold my shares in the new company either. I guess my main reason to hold is that my portfolio is so tech heavy at the moment that this might be a good way to diversify a little.

PS. The date I've seen for the eranings annoucement is Monday 1/11/99. Unlike most companies its usually pretty uneventful but may give us a little extra nudge.

<< I guess my main reason to hold is that my portfolio is so tech heavy at
the moment that this might be a good way to diversify a little.>>____________You might want to rethink your definition of tech stock. One of the reasons that I bought into HBOC was that a research report (don't recall which) referred to HBOC as a "non-cycical TECH stock." Regardless of whatever they may be or aspire to be, "loser" is a good word that comes to mind of late. I'm hanging onto my 1000 shares until I see how the vote comes out. Or perhaps the results are already known, and I'm just behind on the news. Regards, El_Syd

MCK is being added to S & P 500, while HBOC, the acquired company will be removed on the 12th of January. We all know that MCK used to be a MID-CAP, before the acquisition. BTW wall street loves S & P.

All this could explain the recent rise!!!

From now until the merger goes through (assuming it does) the price of HBOC shares will be in direct relationship with MCK so I guess now we should be rooting for MCK.

Maybe we should check out the MCK board and see if there's any activity over there. I haven't done so for quite a while.

Carol

Well, since HBOC was in the S&P 500 before, I would certainly hope the new combined company would also be.

While its true that MCK and HBOC are moving together these days, its not necessarily MCK that is moving the price. HBOC has a larger market cap and is probably more influential. I'm pretty sure the upcoming earnings annoucement is what is moving the stock.

PS. I've got the MCK board on my favorites list but there is never anything new over there. Maybe we should switch over there?

While its true that MCK and HBOC are moving together these days, its not necessarily MCK that is moving the price. HBOC has a larger market cap and is probably more influential.

Why do you think it's HBOC that's more influential? MCK is buying HBOC, not the reverse, and the price we will get for HBOC is based entirely on the price of MCK. At the time of the merger announcement the percentage of the share of MCK at it's price in the $80s came out to about $33 per share being paid for HBOC. That is what the agreement was based on.

Earnings come out tomorrow before the vote on the merger. A good report should mean the merger will go through.

Carol

It really makes no difference whom is buying whom - this is a stock swap merger. The ratio is what is important, each HBOC share gets 37% of a MCK share.

Arbitrage players will work to keep this ratio close to the final 37% so any time one stock moves for whatever reason, the other one will also adjust. Whichever stock is the most active and has the most movement will drag the other with it, since HBOC actually has a larger market cap than MCK - it usually has more momentum and pulls the smaller guy along. Its all pretty academic anyway.

And by the way, HBOC always comes in 1 penny above earnings. You can pretty much count on it.