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Biotech / Medical : GSII - GENERAL SURGICAL INNOVATIONS, INC.

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To: Lighthouse who wrote (64)9/17/1997 9:55:00 PM
From: Cody Goebel   of 211
 
I think the 3 scenarios you outlined all have much plausability (nor are they all mutually exclusive). However, they were all relatively near term in scope. Another possibility--and perhaps the best one--is that the company begins to make large scale sales of its product as physcians turn to it increasingly for the uses for which it is approved and the company continues to identify additional applications for the existing line of ballons and develops additional ballons for as yet untapped applications.

Regarding the scenarios you laid out, an acquisition at a premium is never anything to disdain. Furthermore, I consider the slow death if (1) the market never materializes or some other technology supercedes GSI's or (2) the lawsuit goes awry as the normal risk faced by investing in this company at this point. However, I hope that the path to mature high revenue firm is the one that occurs as we will probably do best under it. Regarding the likelihood, I have no special knowledge or insight, and frankly, turn to SI for opinions from industry participants and knowledgeable people whose views are much more informed than mine.
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