VISX Message Board - Msg: 5238168

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Biotech / Medical : VISX

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To: Joe who wrote (661)	7/18/1998 11:15:00 AM
From: Bajasurfer	Read Replies (1) of 1754

UNDERVALUED The analysts that follow VISX now realize that the price is undervauled. The average P/E ratio is 50 for the laser industry (research this yourself). A very conservative estimate for this year is $2.20 per share. Next year $2.80. We already have $1.16 through the first two quarters. I personally believe we will see $2.50 this year and $3.00+ next year. Assuming a price of $65 per share now we have a P/E of 29.5. That means the stock should be trading at $125 today and $150 next year. Combine this with the extreme popularity in laser procedures (I believe procedures will double estimates) and the fact that VISX will be the dominate player for at least three years. All this adds up to an extremely undervauled stock price. I have in my hands a targert upgrade by one of the major analysts. He has moved up his target price to $85 per share. My question is why hasn't he released this to the public? I believe it is because this brokerage house is a market maker in the stock. They are accumulating the stock. As such it is to their advantage to allow the stock to drift lower. My guess is that they will allow the stock to drift down towards $60 per share. At some lower price he will issue an upgrade with the revised target because of earnings, etc. The fishy thing is that I already have the raised target in my hands. Remember, we have nothing to fear when this stock is dropping $2 to $3 on LOW VOLUME. This stock is 91% institutionally owned (check this out for yourself on market guide). There is no sell off from the institutions or we would be seeing a volume of 2 to 3 million per day, etc. My personal suggestion is that we outsmart the market makers by accumulating now before any upgrades are issued. Off to the beach...

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