Nanny,
Let me help you out! Just got home and my new Red Chip Review was in the mail. FRONT PAGE is a FOCUS REPORT (1st time I've seen that)
on none other than our SNRS. I will quote some of the report here.
If you want me to FAX you a copy (anyone on thread) e-mail my profile
with your FAX# (nysebob2, I will FAX you tomorrow A.M.)- GREAT STORIES
you sent; got big laughs, thanks.
O.K., back to the Focus Report... by Johnny Svoren, Senior Analyst
OCULAR REVOLUTION
A revolution is about to overtake the usually quiet world of ophthalmology and eye care. The emergence of new procedures in refractive corrections offers radically new and appealing alternatives for the large percentage of the world's population who would love nothing better than to scrap their eyeglasses or contact lenses. It's a multibillion-dollar market that, for perceptive investors, procises substantial long-term returns. One of the companies that stands to gain the most when the smoke clears is Sunrise Technologies Int'l. Yet it is one of the least known of the companies in the vision correction market.
MULTIBILLION DOLLAR MARKET POTENTIAL: SNRS will initially focus on the market for simple hyperopia. Statistically, 31% of the initial targeted population over 40 years old in the Americas and Western Europe, or approx. 200 million people, are candidates for the SNRS procedure. This represents a $40 billion market potential, assuming
a $100 per procedure fee is paid to SNRS, and that doesn't even include revenues from laser sales. Recent approval by the FDA to include patients with presbyopia in its clinical studies should further expand SNRS targeted market. To our knowledge, no other company is engaged in an FDA study for presbyopia. We also expect SNRS in the future will broaden its focus to include patients with higher levels of hyperopia, possibly up to five or more diopters.
COMPETITION:
Several other laser companies are conducting clinical studies for the correction of hyperopia, including VISX, Summit, and Autonomous Tech.
Of these, we consider VISX and BEAM to represent the primary competitors. ATCI just started hyperopia trails in the US in Sept, 1997. VISX and BEAM already have approval to correct myopia with their PRK and LASIK procedures, but treating hyperopia with these technologies is much more difficult. While there is a possibility one of these companies could obtain approval to treat hyperopia in 1998, we believe SNRS's procedure offers significant competitive advantages that should allow for a larger market share and could allow for faster penetration of the hyperopia market than VISX and BEAM have gained so far in the myopia market.
>>>>fast forward to end of report>>>
THE UPSHOT FOR INVESTORS:
What does all this mean for an investor in SNRS? Look at BEAM and VISX, two comparable companies. Near the time of FDA approval, the market values for BEAM and VISX reached $1 billion and $600 million, respectively. For SNRS, that would translate into a $15 to $25 share price.
ONE CAVEAT:
BEAM's valuation has dropped to $200 million and VISX's to $400 million because of poor strategies. BEAM for a while competed with
its customers by establishing its own vision correction centers, and market penetration rates have fallen far behind initial estimates because of the high costs of its systems to ophthalmologists and patients.
We don't expect SNRS to make the same mistakes.
Does this make everyone feel better?
Regards,
Skane |
