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Biotech / Medical : Theragenics (TGX) on the up and up

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To: Tulvio Durand who wrote (1022)7/27/1998 12:39:00 PM
From: Ron Kline  Read Replies (1) of 1055
 
Ok I agree she should have done better in how she handled the situation and maybe guiding the street too optimistically on her expectations for the company. But I do see this kind of stuff happen all the time and I'm not sure I agree that the stock would be higher today if she did differently. Even Michael Dell who you quoted as handling everything great has not stopped a drop in his stock in the past. You see him as doing great because the company is gaining market share and he continues to surprise the street. Obviously what you say is important, but what really moves the stock is earnings and exceeding what the majority are expecting. Obviously there is a change in forecast for THRX and I believe that the analysts had placed very high expectations on the company which they now realize will need to come down a little. I think they overly punished the stock but smaller stocks tend to overreact both on the upside and downside. To me the key is now that it has declined what is the next move for the company. Will they continue to manage the company in the right way to bring the stock back in favor again. All stocks will go down sometime, the ones that come back over time are the ones you want to keep. I guess the jury is still out and hopefully if you don't believe that they will come back you have taken your chips off the table and gone elsewhere.
Ron
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