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Biotech / Medical : Guidant (GDT)

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To: Sam Armstrong who wrote (20)9/28/1997 4:33:00 PM
From: JMS   of 235
 
Sam, Guidant is in one of the few industries where the end user does not have the luxury of bargain-shopping. Margins therefore will stay at current level.
Here's why you should buy long shares and some Apr. calls-GDT will be introducing new products over the next few months that will increase revenues by a substantial amount. With lack of margin pressure, earnings could go crazy a couple of quarters down the road. I would not be at all surprised to see the stock in the 90-100 range after the fda review in January and 2 more earnings reports.
With the movement in the price recently, I'd look for either a 5 point run-up or a 5 point loss this week.(8-10% either way)
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