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Biotech / Medical : VISX -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (1698)	3/1/2000 12:09:00 PM
From: Jeff Lins	Read Replies (1) \| Respond to of 1754

What does 1.8 billion in sales have to do with anything? Just because you have big sales in one line of business doesn't mean you can get into a price war with a profitable and entrenched competitor...holy crap, I can show you plenty of big companies that lose money...and plenty others that that make money and don't want to have overall profits diluted by getting into a new product line at reduced profits..

To: Charlie Smith who wrote (1698)	3/1/2000 3:39:00 PM
From: nihil	Respond to of 1754

An implicitly cooperating duopoly may be profitable to both companies but both must be willing to share. An attempt by either party to gain a monopoly by price cutting not only destroys profitability for both, but is illegal under the Sherman Act Sec. 2. The common price of the duopolists must be low enough to exclude undifferentiated third parties. BOL has long experience in similar markets. I think they are willing to share, but their target share may be bigger than VISX would like to yield. Because of wealth differences, I think VISX must move over and make room.