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Biotech / Medical : ABMD - Replacement Heart System
ABMD 381.020.0%Jan 3 4:00 PM EST

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To: BostonView who wrote (12)12/9/1999 10:54:00 PM
From: Mindshare  Read Replies (2) of 147
 
There are three possibilities fueling this run:

1. Momentum trading pushing the stock way higher than it should be based on human trial anticipation. Revenue from Abiocor is 3 years away minimum and this assumes the device is safe and effective in humans.

2. Buyout by a larger medical company. This is supposedly what started the run two months ago. However, there is no indication this is going to happen. BVS sales were down this quarter and have been pretty much flat recently. Abiocor is a wild card. It could generate billions or nothing. Genzyme owns 17% of the company, but I doubt they would want the rest of it.

3. Acquisition or development of new promising technology. The company is usually very quiet and conservative considering they are the last great shot at a TAH. They would probably be just as quiet about something that would change the mission statement of the company. However, insiders or analysts would know if something was brewing and begin buying the stock.

I personally feel No. 1 is the most plausible, but would not be surprised if No. 3 were true. No. 2 is rumor and the least likely IMHO.
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