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Biotech / Medical : Endosonics(eson) -- Ignore unavailable to you. Want to Upgrade?

To: Jimmy Dell who wrote (101)	2/13/1998 9:46:00 AM
From: Lenny Ehn	Read Replies (1) \| Respond to of 205

If you are into TA, the recent action looks like an upward-sloping triangle, which suggests an upside breakout soon. I hope we're both right......... Len

To: Jimmy Dell who wrote (101)	2/13/1998 4:16:00 PM
From: Asymmetric	Respond to of 205

Jim, No need to apologize. High today so far was 10 3/8. My read of the technicals is as follows: Stochastics (both fast and slow) have now crossed the 80 mark. My understanding is that technically is bullish and often technicians use that crossover point as where they initiate buying. OBV (on balance volume) continues to show an upward slope, meaning there is more buying on upticks than selling on downticks...so there gradually is emerging a situation of more buyers/buying than selling...ie accumulation. Relative strength continues to show good improvement, and is on an upward trend here as well and confirms the previous. Money flow is trending upward (very slightly) so the move here should be slow and gradual. It is however recovering from being in heavily negative territory - which to me is actually a positive as it indicates an oversold condition - which we both know to be true...Endosonics is undervalued here. And even if it should stumble over the near term, the risk/reward ratio is heavily weigthed toward the reward end. Because it is oversold, and fundamentally undervalued, and the trends are positive, I doubt this stock will go below $9 from here (though i have been wrong before), so possible loss is 10% (from $10), but possible gain should be at least back to the 12-13 area, which would be a 20%-30% gain. There was also insider buying up to I believe $11.88, so $12 should be achievable over the near term. So at minimum reward outweighs risk 2-1, at minimum. With Robertson Stephens price target of $18, and Volpe Welty's price target of $21, the reward ratio is obviously/ultimately much higher. Now if my reading on the TA/technical stuff is off base anywhere, you or anyone else here make sure and correct me. As some final additions, I also detect biotechs and small medical stocks acting better and showing good gains, so money is coming into the sector in general, which should also help a company like Endosonics. ESON also has no real Asian exposure, so that should isolate it should that region begin to deteriorate again, limit downside, and lend a certain attractiveness to it as an investment for investors looking to avoid that kind of exposure. ESON also has a demographic play to it as well. As the population ages, and they see how little they will actually be receiving from Social Security to live on, hardening arteries and chest pains will become more prevalent (just kidding here folks). Just some thoughts. Good luck to us all. Peter.