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Biotech / Medical : ICU Medical, Incorporated
ICUI 149.90-0.1%Jan 30 9:30 AM EST

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To: bill hopkins who wrote (7)12/14/1996 10:20:00 PM
From: Sam Pantel   of 80
 
Bill, ICUI is expected to miss this quarter earnings as well. Maybe that is what is keeping a lid on the stock price. The analysts expectations are around 9-17 cents (impacted by lower margins and litigations) and they are expected to come in at the low range.

But next year seems very hopefull especially since earnings from Europe are going to kick in.

I'm still optimistic about ICUI over the next six months. I do not think there is much downside because of 1) the cash on hand ($34 MM) and lack of any debt, 2) long-term contracts in the US, and 3) growth potential in Europe.

The biggest risk I see is that the stock stays where it is, since it is not well covered by street analysts and the medical supply business in general might be depressed by concerns over controlling health care costs.

Another thing I noticed was that since it came public the period from Nov-Jan is very positive for the stock and the MACD always gives a buy signal at this time. The MACD and other technical indicators are currently giving a buy signal.
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