Theragenics (TGX) on the up and up Message Board

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

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To: sport who wrote (1031)	7/30/1998 7:53:00 PM
From: Ron Kline	Read Replies (1) of 1055

Yes he did call me back yesterday. I asked him what his assessment of the situation was. He told me that one analyst (don't remember name) called them and asked a bunch of questions and summed up that THRX should be downgraded. He based his decision on competition potentially hurting profits down the road and so he lowered next years numbers. Ron said they didn't agree at all with the report. For example this analyst based a slowdown from calling 1 doctor and asking him how many orders he made last month. Hardly scientific. Then the Cabot newsletter told subscribers to sell due to momentum faltering which added to the panic. He said they plan to be making all targets they have set out and they see no competition doing anything to those projections. They are still at full capacity and they just brought another system online. Another system just arrived and is being set up also for production. Right now it's a matter of meeting demand at this point. People who order still need to wait weeks to get product so they aren't sitting around waiting for orders. As far as THRX is concerned there was no change whatsoever with the company. The reason they didn't say much during the fall is that they have an advisor they talk to who guides what they should say or not say. It's more of a legal decision on their part to word things in the right way. For example they say business is booming and then the stock falls later they can be held liable. In the US the laws are crazy that you have to protect yourself and it just isn't a matter of saying what they can to prop up the stock (already mentioned this is in my commentary). It's not a question of hiding anything. As far as why they didn't make those positive announcement about growth earlier I think the downfall caught them off guard and they were not prepared to have to deal with it. It was right when 4th weekend which is some are already leaving on vacation, it was just a bad time for it to happen. As far as Christine selling shares she has sold so little compared to her holdings its pathetic. It's like you selling 1 share or less from your holdings. It means she has confidence in the longterm for THRX. My feeling is that everything is going as planned but because comparisons are going to not be as good for the next quarter or so the stock has taken a hit. The way to be favored again I think they will need to beat the street by more than 1 penny. With 2 new systems up and running I can see them adding at least 3 or 4 cents extra to earnings in the next quarter which I think could bring them back in favor. Right now the analysts have only factored in 1 penny more EPS for next quarter with 2 new systems running. This to me seems conservative. If THRX finds that the analysts are on the low side they will be guiding the street to higher numbers. Right now they will not comment. Ron

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