GSII - GENERAL SURGICAL INNOVATIONS, INC. Message Board

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

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To: Lighthouse who wrote (118)	4/26/1998 11:07:00 AM
From: Crossy	Read Replies (1) of 211

Lighthouse, since it's obvious You did most of the DD on this company, let me adress my "summary" to You. Although you might be aware of everything I dug up, I think it's time to summarize all the pros and cons of this company at this point. Let me also mention I got into GSII at 4.5 because of a favourable chart reading and good FA pointing into the same direction. Here's what I found and concluded.. Ever wondered what happens to a solid company when the patent lawyers gnawn at it and an important distributor agreement ends ? It gets out of analyst favour and the stock price tanks. Exactly that happened to GSII, General surgery, which fell from its post IPO high of $7 to $3.75 recently. But this company has some well-hidden credentials. First of all its financial ratios. A current ratio of 23 resulting in a net cash position of $5 per share (!): biz.yahoo.com , which means that the company has approx. $40 million in cash / cash eqivalents on its hand. Medical technology is an increasingly growing field and intellectual property is king. Every rudimentary fuzz is patented and lawyers earn a living from the resulting battles. Against GSII the well-known heavyweight GDT (Guidant) claimed violation of its patents - a dark cloud over the shareprice of GSII: Today, that cloud was removed - at least temporary - giving good indication that GSII's patent position will finally prevail also: biz.yahoo.com The nice appeal of GSII products is the relatively easy procedure with the FDA, the simplified 510k approval: biz.yahoo.com , which should reduce time to market of GSII in contrast to many other medical-device technology related segments. The company doesn't want to increase overhead beyond a managable size and consequently seels thru distributors. In past quarters GSII held a single contractual agreement with JNJ, which expired end of last year. Net effect was a quarterly sales reduction from $2,2 million to $0,8 million. But the firm was able to forge new relationships which are going to compensate for this easily in the future: biz.yahoo.com biz.yahoo.com biz.yahoo.com End of March 98, a new CEO was named to complete the revamp of a succesful startup: biz.yahoo.com Company exploded Thursday from $4 to $4.5 and has a bullish chart. It looks as if it is one of the succesful medical device companies down the road. happy investing CROSSY

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