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Biotech / Medical : Arterial Vascular Engineering AVEI -- Ignore unavailable to you. Want to Upgrade?

To: Walk Softly who wrote (174)	4/26/1998 11:57:00 AM
From: Jeffrey L. Henken	Read Replies (2) \| Respond to of 410

I have been looking hard at AVEI and trying to understand why the stock has been trading down. Earnings were spectacular, far exceeding expectations, but insiders were selling knowing that their stents were selling like hot cakes. Why? Well despite the fact that AVE's stents are carving out outstanding amounts of market share competition remains stiff. Almost every major competitor has new product lines coming out and the management at AVE recognizes that they cannot expect to grow at the current astronomical rates forever based on a limited product line. There is quite a bit of talk on this thread and the one at Yahoo about AVE being a take over target. I'm sure at the right price it would be a real jewel(for the right company) but rather than seeing evidence that AVE will be acquired we have instead seen evidence that AVE is attempting to become a long term player in the minimally invasive market all on it's own. That's why they bought World Medical. Unfortunately as great as World Medical's AAA stent designs are they will not be on the market until the year 2000. AVE will have to take an accounting charge on this acquisition and it's possible that some of the selling that is going on is simply a result of the company's growing pains. The future of any company is never 100% certain. Investors in any stock try to make informed decisions before they buy and sell but often we simply react to our own emotions. The selling that has persisted no doubt is a combination of a lot of factors but it is the uncertainty that caused AVE insiders to sell their shares for a certain profit. It is the uncertainty that is making AVE buy a company like World Medical. The only good news, and this is a certainty, is that AVEI at $33 is a much better buy than it was at $45. Regards, Jeff

To: Walk Softly who wrote (174)	4/27/1998 11:34:00 PM
From: Goolie2	Read Replies (2) \| Respond to of 410

Craig, interesting that you are short and I have a long position in AVEI. If there is no additional information forthcomming from AVEI it may simply be a bellweather indicator for the market. The stock did get a downgrade to neutral or market performer today by Adam Harkness, and I used the weakness to add to my long position. My thoughts are the stock has held technically, and a downgrade didn't bring significant selling in this volatile market. Adam Harkness estimates are in sharp contrast with Goldman Sachs and Cowen. I would have to go with the big boys on this one, but it could explain the recent price action. Thanks, Goolie