Here is an old news release from last September ( 9-10-97 ). We
will see how accurate this analyst is.
Dave
P.S. With 77 mill. revenue, 10x revenue is 770 mill.(market cap)=
$40.5 per share.
PLC SYSTEMS (PLC) 14 5/16 +11/16. Although the lackluster gains
posted so far today by PLC shares may not indicate it, this stock
is being pumped by Robert M. Cohen & Co, as the firm initiates coverage with a
"speculative buy" rating and talks up the prospects
of a near-term approval of the company's key product. Analyst Keith
R. Bossey is making a call that could spell big gains for those willing to make the bet that
Mr. Bossey knows what he is talking about. According to the analyst, AMEX-traded
PLC shares will
return to the $26 level over the next twelve months, ignited by FDA approval of the
company's Heart Laser. On July 29, PLC shares
tumbled 12 points, or 48%, after an FDA panel recommended
postponing market approval for the company's heart laser TMR system, due to a lack
of follow-up data. Mr. Bossey believes that it is important to
note that the FDA action was a non-approval rather than outright rejection. In fact, the
Cohen analyst anticipates approval as early
as the 1st qtr of 1998 for the product which is currently being used "successfully" in
Europe and Asia. In a best case scenario, with 1st qtr approval, Mr. Bossey forecasts
fiscal 1999 earnings of $0.79 a share, on revenues of more than $77 million. For fiscal
year 1996,
PLC lost $0.09 a share on revenues of $11.87 million. No doubt, the stock will pop
when/if the company receives approval. Although the scenario certainly seems plausible,
the question you must
ask yourself is: Am I ready to put my money in Mr. Bossey's hands?
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