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Biotech / Medical : QDEL - Quidel more quick diagnosis
QDEL 26.60+9.2%3:59 PM EST

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To: jad who wrote (528)3/24/1997 1:42:00 PM
From: Howard Schellenberg   of 1693
 
Possible competition - YES; bad for Quidel - NO!

Quidel never expected to have a monopoly on test kits. Competition is a way of life. But Quidel still has the premier test kit for Strep A&B and h.Pylori on the market.

The other companies can't compare to QDEL as far as stable, profitable business. Quidel has been "around the block" for years and has not only the ability to turn out a great product line, but MORE IMPORTANTLY the marketing savvy to distribute and sell their products.

The others are "start-ups". You just can't compare the two types of companies. R&D companies' stocks can go up rapidly on news like you have described. But they are very risky for investors because once the money is made on the news item, the stocks fade fast. And no one wants to invest in them long term.

I would rather invest in a diversified, profitable company. I think most in the medical community would rather buy from Quidel than the others. Large medical distributors like Henry Schein deal with Quidel. That's how clinics and hospitals get their lab products. Without good distribution, no product gets to the medical community.

On a recent trip to some of our medical clinics, I was thrilled to see Quidel products being used in the labs now. That wasn't the case last year. Our clinics are saving big money and making customers happier by using the Strep test kit. I'm willing to bet they will hear about the h. Pylori test kit in the near future.

Quidel is on the brink of some major growth, friend. The last quarter was just the beginning. Wait one month and you will be thrilled to buy the stock at $6-7. I'll be kind and not say "I told you so" when that happens.

Remember, the STREET estimate for the next quarter is .06 vrs. .01...that's 600% growth on the heels of a 300% last quarter. Someone is going to start paying attention.
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