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Biotech / Medical : Cyberonics (cybx) epilepsy therapy recommonded -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (277)	4/19/1998 11:58:00 AM
From: Valentin	Read Replies (5) \| Respond to of 471

Hi Dennis! Here my answers to your questions about CYBX in your message 174 on the Lifc thread. I am well loaded in Cybx. I bought the shares I own now at 20 7/8 and for taxation reason I will wait some more months before I consider selling. I bougth also shares at 12 but I sold them at 31 1/8. I would consider selling now in the case I loose money. But I don't think that Cyberonics will go under 21. I would be very astonished. As a pointed out in my calculations I think that in a year $40 should be a fair price for Cyberonics. This calculation was based on a P/E of 15. But it is not excluded at all that the P/E ration may be much higher. This is a new product and expectations are high. So with a price of 26,5 last Friday Cyberonics is in MY opinion a buy. But be cautious this is my opinion and I may be perfectly wrong. I shall not buy more shares of Cyberonics. Cyberonics represents 5,21% of the money I have in stocks. This is for me for this type of co a maximum. I am convinced that it is a good investment but they have only ONE product. This is always dangerous. I know that sales of Metronics depends by 68% of their pacemaker, but this product is universally adopted. This is not yet in such degree the case for the pacemaker for the brain. A buy decision depends not only on the share price and the outlook, but also on the investment style. A think that the earning report was good. Sales were lower than I expected, I was too optimistic. Nevertheless an increase of 54,87% is quite good. If they could stand this rate for a year share price could be easily be in the forties. Receivables with 4,98 are almost equal to the sales of 5,17. This is much too high. They should try to get their money faster. They have a lot of cash and I think that they have now enough money to reach the break even. As for the share price in the immediate future I have no idea. This is a problem for TA and I have the impression that fred knows a lot more about TA. I think like fred that the co shall not release information so soon. They are very cautious in issuing press releases, but their releases are always important. This is quite a good sign. But in the absence of releases investor's interest may fade away and than stock price can sink to less than 23. Personally for Cyberonics I take no action at all. I am waiting for the Q4 results and than I will reconsider my calculations hoping that they were not too optimistic. I shall make some comments of Lifc in the Lifc tread. A last question Dennis: What is the meaning of "gg", "IMHO" and o) I found in your post? See you later.