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Biotech / Medical : Boston Scientific (BSX) Any Comments??? -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (713)	12/17/1999 11:46:00 AM
From: Lighthouse	Respond to of 798

More color from the conference call for what it is worth. The following is the author's own opinion and conclusions and can be stupid, dumb and unreliable. Year 2000 will be the year of paying off debt. BSX expects to generate close to $600,000,000 in free cash and to use this money to pay off st and lt debt. {I have argued that the balance sheet was looking better and that BSX should be investing for revenue growth opportunities - management has decided to further deleverage. I cannot quite get to $600 M in free cash unless cap ex is cut back somewhat or they anticipate squeezing more money from the working capital line). One way BSX will try to make it to $1.20 in EPS next year is by keeping R&D at 7% of sales. {That number is too low and management knows it, but they appear to want to establish credibility and execute beofre ramping R&D. So we make the numbers, but at what opportuntity cost?} Several principals from Medinol have relocated in Boston. Tobin is meeting with these guys to try and make Medinol more "seamless" in BSX's operations. Will they also try to establish residency and take advantage of the U.S.'s lower tax rates? The stent wave has crested in terms of year over year growth (witness analysts reducing estimates for GDT - imagine that?) . . . . everyone is hoping that the wave does not smash them against the beach. Nothing big in the pipeline for 2000 - for anybody in cardiology. Blocking and tackling work is not as much fun as a monster new product that lifts all ships; nonetheless, blocking and tackling is what is in store for at least the next year. Cheers,