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Biotech / Medical : SonoSight (SONO), Handheld ultrasound for the masses
SONO 18.95+2.1%12:50 PM EST

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To: Sam who wrote (214)9/9/1999 2:58:00 PM
From: TRIIBoy  Read Replies (1) of 365
 
TRIIBoy shares a new idea with his SONO friends: GZSP (Genzyme Surgical Products).

1)$10 a share in cash, trades at $6.5
2)Valuation on a simple basis is $20 a share outside of cash
3)Spin-off, no analysts
4)Insider buying

GZSP has five parts:

1)Plastic surgery equipment
2)Minimally invasive heart surgery equipment
3)Seprafilm (prevents adhesions which are fibrous bands that form around scar tissue after surgery, bad shit causes obstructions, estimate they cost health care industry $1.4 billion in postoperative problems)
4)GeneGraft, about to enter phase I, uses gene therapy to develop blood vessels in heart, can you say ENMD?
5)Cell Therapy - preclinical, uses cells in your body to regenerate scarred heart muscles

Valuing Seprafilm at 3 times 2000 sales, surgical equipment at 2 times sales and other two at a combined $75 million, yields a near $20 per share valuation without cash. If you look at the comparables you will see that my assumptions are way to conservative.

Also note that CTSI, who makes minimally invasive heart surgery products just got bought out for 10 times trailing sales.

The fair value of this company is at least $25, and if things go well it should go to $30.
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