I looked for more info and could not really find any.
After talking with my fiancee, she made a couple of good points
about this business:
Although stents can be a lucrative business, there does not appear
to be anything that AVEI is doing that is very different from other
competitors in this market.
One of the newest and most interesting concepts in the stent
business is the use of resorbable polymers in the manufacture of
stents. Resorbable polymers are materials which are absorbed by the
human body over time so that they do not remain permanently attached
to the artery. The stents are generally needed immediately following angioplasty and once the artery has recovered sufficiently they may
not necessary. There is at least one company, Cordis, working on
such a stent, but they have not received FDA approval yet.
As for the possibility of Johnson and Johnson buying this company,
I wouldn't bet on it unless you can think of some VERY solid reasons
for this to occurr. JNJ has recently bought more than its share of
companies, including Cordis, Mitek, Joint Medical, and Menlo Care,
and they already develop and market stents of their own.
If I were playing the stock, I would probably take my original
capital out of the stock and leave in the profit until FDA results
are announced. Remember, you are playing an IPO stock and the price
may be quite volatile until more information and a few quarters of
predeictable earnings have passed. I guess what it comes down to is
this: if you are happy with the money that you have made, then take
your capital and let the rest ride. While this may seem conservative,
consider that during the first year of being public, if there is any
bad news, the stock will probably be beaten down much more than a
well established company.
Happy Investing,
Fred |
