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Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: Commgod who wrote (1174)	6/6/1998 10:49:00 PM
From: Jeffrey L. Henken	Respond to of 2887

The following is an excerpt from the June 8th Barron's article concerning the potential suitor's of Pfizer's Schneider angioplasty subsidiary: With an approved stent, Boston Scientific will offer one-stop shopping for angioplasty procedures, as its archrival Guidant already does. That will surely turn up the heat on Arterial Vascular Engineering, the Santa Rosa, California, firm whose rocketing growth in stent sales has pushed its stock market value as high as $2.9 billion (at $45 a share times 63 million shares outstanding), a valuation that many investors found extreme, especially in relation to the company's annual revenue run rate of $275 million. ''Arterial Vascular Engineering has done very well as a pure play in stents,'' says Reicin, ''but can they continue to do so well?'' The firm was early into the stent marketplace with a superior product. A year from now, however, Guidant and Boston Scientific will both have stents that will be comparable to AVE's product. ''When you have three acceptable products on the market,'' speculates the analyst, ''then economic considerations and bundling will become more important.'' One other reason that AVE shares have slipped to recent levels of $29, notes Arnold Snider, is that the firm is one of a few potential buyers of Pfizer's Schneider angioplasty subsidiary. If AVE made such a deal, it could round out its product line but might substantially dilute its earnings, which totaled $56 million, or 86 cents a share, on $206 million in revenues for the nine months ended March '98. I once again submit that American BioMed might just be a very viable alternative at a highly attractive price. Everywhere I look on threads dedicted to smaller healthcare companies in the minimally invasive surgical field I read of rumored acquisitions. I am not saying it will definitely happen to American BioMed but to say it never will, simply because it never has, is very poor reasoning. Regards, Jeff