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Biotech / Medical : Medtronic (MDT) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (313)	7/12/1998 5:43:00 PM
From: Mike	Read Replies (1) \| Respond to of 687

Dennis, Yes I am "in the field" but by no means am I an expert. J&J does have a history of messing up device companies. J&J is a wonderful consumer and medical company but not "high tech" implantable medical products. If J&J did buy MDT hopefully it would take a price in the range of $50 billion. The market cap on MDT now is in the range of $33B. As far as your comment on the MDT pe. It is very high right now and in fact is at historical highs. One thing to consider is that the trailing 12 month EPS on MDT is $1.26. Many times you will see that the eps is 0.96. This (0.96)is after you take into account the one time writeoff of MDT for the angioplasty business. Even at a pe of 55 I do think it is "rich". But when you consider the products coming out in the next 6-9 months it could very well deserve this pe. If you are considering new purchases of MDT stock you may want to consider cost averaging in over the next 3-6 months. Take this stock after it is purchased and throw it in a vault. You will be very happy over the next two years. Actually you will be amazed. Best of luck, Mike PS-IMHO a good price target for MDT over the next 12 months is $85. The reason for this low of a target is I think now we are slightly overpriced due to the buyout possibility. I did not expect MDT to get to the $70 range until Oct.