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

To: yosid who wrote (496)	4/16/1998 1:06:00 PM
From: Vector1	Read Replies (2) \| Respond to of 1754

Yosid, I couldn't disagree with you more. The machine sales are only important to the extent they create an installed base. The power is in the royalty stream. The machine is akin to a durable (the razor) while the royalty stream is analagous to the razor blade. That is where the profit is. VISX has tremendous earnings momentum right now and there is nothing on the near term horizon which is going slow it down VISX is the dominant player in the market with a huge (and growing) cash horde. To the extent new technologies emerge they will have the power to buy any technological threat. VISX has long had a substantial short interest. The shorts are running with their tails between there legs. The semi smart shorts covered in advance of the earning release. V1

To: yosid who wrote (496)	4/16/1998 1:09:00 PM
From: Jim Mac	Read Replies (1) \| Respond to of 1754

Yeah, whatever, Yosid. I remember when you were touting Summit, and saying what a great value it was using your market cap analysis methodology. The reason why I made such a big deal about Visx's superior laser in the past is because of what is happening right now. Visx STAR became the laser of choice even before approval, and now is providing Visx with tremendous cash flow Summit can only dream about. Summit's inferior technology and flawed business model has resulted in their current low volume/barely breakeven situation. However, now that Summit is approved for astigmatism, I expect Apex procedure volume to grow very nicely, putting Summit back in the black. Anyone investing in this sector shouldn't avoid the main cash-generator, Visx. It's not going to stop for a long time, if ever.