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Biotech / Medical : Summit Technology (BEAM)
BEAM 22.20+7.8%Nov 21 3:59 PM EST

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To: pappy who wrote (848)4/22/1998 9:22:00 AM
From: yosid  Read Replies (1) of 1386
 
Pappy
I just finished a projection of the effect of decreasing equipment sales on the bottom line for VISX. Even with increased royalties from procedures done, the lack of Hardware sale increases will negatively affect the price of this stock longterm. Their fixed cost will become a problem by year-end if revenues from sales of the product do not trend upward. Also, new competition, current litigation, and saturation may all play into the equation.
This is not to say they won't be profitable. It only means that the price of the stock won't get the jump many are seeking.
I'm even more convinced now that you must sell your Main product to stay in business. I'll be keeping an eye on the sale volume, quarter to quarter.
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