Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bajasurfer who wrote (720)	10/12/1998 8:33:00 PM
From: John Binford, Jr.	Read Replies (1) \| Respond to of 1754

Let's look at the absolute best case scenario for 1999: Assumptions: (1) 1,000,000 U.S. procedures (current estimates are for around 500,000 to 600,000) (2) 80% share for Visx (maybe 70% is a better estimate) (3) $250 fee per procedure (should hold up) Resulting procedure revenue would be $200 million to Visx. Assuming sales and international royalties cover most costs, profits would be around $120 million or $8/sh after tax. This would be up from around $2.30/sh of operating earnings for 1998. I would say the stock would blast off. $150/sh to $200/sh is possible. However, analyst estimates are in the $2.50 to $3.00/sh range, so I wouldn't count on these way out assumptions. The company has stated that they plan on growing earnings in the 25 to 30% per year range. However, I'm sure they are not opposed to growing them at a faster rate if possible.