Endosonics(eson) Message Board

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Biotech / Medical : Endosonics(eson)

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To: Peter Caradonna who wrote (124)	4/2/1998 6:32:00 PM
From: yehuda fruchter	Read Replies (2) of 205

I hate to admit it but I also own this stock. Why has it been going down (and I knew this awhile ago and should have sold my share, but of course hope gets to you)? Two reasons I think : 1. JNJ has not been selling ESON's product. Now the question is why? ESON says that JNJ has not been selling the IVUS because it has its own problem with stents. This is I think a blatant lie. JNJ has not been selling the IVUS because there is no demand for it, plain and simple. I spoke to my cousin who is the lead cardiologist at Long Island Jewish and he told me flat out that there is no need for IVUS except for training new doctors. It will not be used in alot of operations. 2. Now JNJ is not selling ESON's products but the collaboration ends at the end of '98, so who is going to sell ESON's next year. Of course, ESON is preparing for this as they have said that they are going to double their sales staff this year. But that costs money. So costs are going to have to go up in the short-term, bringing earnings down. Of course not one of the analysts who follows this stock has even mentioned this added cost, but clearly the market recognizes it. Analysts estimates are way too high for this company.

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