Spine-Tech (SPYN) Message Board

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Biotech / Medical : Spine-Tech (SPYN)

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To: Neil_L who wrote (98)	1/29/1997 12:03:00 AM
From: Stratajema	of 242

Neil. Gee, I don't have an earnings concensus on SPYN. At this early point in the game, earnings don't matter since Wall Street is keenly interested in top line revenue growth. I'm anticipating SPYN's gross margins and net operating margins will be low since they are just starting to ramp up production/sales and the cost to produce/sell the first batch of inventory will be high on a unit basis. Economies of scale will kick in later at higher production levels and when they start repeat sales. Also, Zacks is obviously forgetting to list the 2 or 3 firms that recently initiated coverage with a hold rating due to the lofty stock price (then at $22 to $28). On a personal note, I've given up playing the "If" game especially around small cap stocks. You know like "IF they can meet estimates this quarter...IF they can sign up a new international distributor...IF they can win against U.S. Surgical...IF there will be quick market acceptance." Given the horrible performance of small and even mid-cap stocks, I'm strictly a "show me" type investor for the forseeable future. Sure I'll miss some of the upside if the news is great but the downside on bad news can really wipe ya out fast! Good luck here! Regards, David

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