Scott, disagree to a certain extent. A someone else pointed out, if I am having the operation, I want the best stent out there. Likewise, if I'm a physician, I do too.
I disagree that a "stent is a stent." If this were true, there would be no AVEI, as J&J would continue to dominate the market as they had in years past. There are big differences in terms of flexibility, radiopacity, ability to implant, etc. To this point, the gfx is generally acknowledged as being the highest quality, most versatile stent out there.
The company also recently implanted its first "brain" stent, and more uses for stents continue to pop up. Though not approved yet, they would afford a growth avenue for AVEI.
I agree that an acquisition could make sense. Given the balance sheet - squeaky clean - this is a possibility.
I do agree with you that the perception AVE is a one-trick pony will reduce the multiple given the stock - about 10.5x '99 estimates. With GDT getting 25x '99 though, it seems a little overdone.
IMHO.
mmeggs |
