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Biotech / Medical : Guidant (GDT)

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To: Lighthouse who wrote (197)6/20/2002 4:09:19 PM
From: Lighthouse  Read Replies (1) of 235
 
Do not believe everything you read from posters. I could be stupid, lazy and most importantly - wrong.

I believe I have seen this picture before:

STJ at $22 in 2000
BSX at $13 in November 2000

Now I guess it is GDT's turn. I now peg GDT's price to "Raw Cash Flow" at apx. 16 to 17. By comparison MDT is at apx. 43 times "raw cash flow" and BSX is at apx. 32.76 "raw cash flow". GDT's # is about as low as I have ever seen it. Also if a eliminate the stent division entirely - I still get a DCF value above the current price. Amazing.

If everolimus works, a big IF at this point, in 2005. No way this stock stays at $30.50. I like the upside/downside at these levels.

Cheers,
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