I think there is a silver lining here. Yeah the Dow's down, and it will probably be down for most of the week, but this will get the stock into stronger hands. Personally, I am in this for the long haul. Just like anyone, I sleep better when my stocks are making dynamic, upward moves. However, since I'm in for the long haul and since I am convinced that this stock will make those upward moves at some point, just because it's not today, I am not in a panic.
The facts are that this was approved by the panel 10-0; it appears that the FDA is behind the company; that 150,000 people a year need this procedure(and this # is growing);the company is AT LEAST a year (probably more) ahead of competition; the company is not running out of cash anytime soon (they just got another $10mm on top of what they got 9 months ago); that Medicare, the HMO's, and the private sector are all dying (no pun intended)to save money anywhere they can; and that this apparently really works or it would not have been approved.
GO FIGURE:
There are apparently about 900 plus open heart centers, let's say in the next 18 months PLC places lasers in 15% of those centers and maybe it goes up to 25% the next year; do the math!. It has been stated that they'll get +/- $3500 per procedure. Pick a minimum # of procedures per week, figure the company will keep between 30% - %35 of the revenues pretax, and calculate away. Finally, don't forget that the weekly procedure number will increase over time and that none of this includes adjunct to by-pass. Add by-pass in and the numbers go through the roof!
So my conclusion is that long term players should watch long term issues. As long as they are OK, go out and find other long term plays!
Good luck to all! |
