Laser Vision Centers, Inc. (NASDAQ: LVCI) Message Board

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Biotech / Medical : Laser Vision Centers, Inc. (NASDAQ: LVCI)

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To: W Shakespeare who wrote (382)	1/24/2000 12:25:00 PM
From: Rob S.	of 413

That observation makes sense: as the analysts have turned sour on the sector the institutions have taken their advice and pulled out. For the most part the analysts were right, the industry had grown fat during the "early adopter stage" and competitive pressures have caused an adjustment of the outlooks for companies in the sector. LVCI is no exception - their outlook has changed as well. However, the trend in the industry to become a mainstream treatment via wide availability and lower pricing places LVCI as being in the right place with the proper strategy. Analysts were right to revise their outlooks but they were wrong in the first place to have them so high and not to recognize the inevitable growth and maturation cycles of the industry. The pendulum has swung to the extreme. LVCI has changed from an over-extended darling to an out of favor value play. The institutions are finished selling (they have been out of it for the most part for several days) and the little guy is turning over the stock out of fear that things will get worse. I expect LVCI to show results that are on the low end of current estimates but still show record sales and only a somewhat dampened outlook. Maybe this will come as a surprise to some investors who are still expecting better than expected results. I think the stock is a bargain now and if it continues to get punished it will be more so. What will institutions do? Buy, sell or hold? If you were just starting to look at LVCI, it would look like a buy from a valuation and growth basis. However, they probably would wait to see how the quarter turns out. Management has been too optimistic about pricing in the industry and when management doesn't know exactly what is going on it sends a chill into the analyst and institutional investment community. If the company can continue to show that they have control of the expense side and that sales are growing despite the maturing of the industry (price declines) then institutions will climb back on board - but probably timidly at first.

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