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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (17393)	10/26/1998 6:50:00 PM
From: Sonki	Respond to of 120523

PM: picked up this from yahoo board. EPS 0.16, beating estimates by .02. Very good news. They report greater than expected response by Type II diabetics -- this bodes well for the future. PM's story falling into place perfectly. I consider it an excellent stock in an uncertain market such as this, given its high growth rate and essentially guaranteed demand for diabetic products, even in market downturns. The only threats I see to a several year run of ever increasing earnings are two: 1) Feds change reimbursement rate for diabetic supplies and 2) Major national competitor begins to compete for customers. That's why getting as many customers as quickly as possible is crucial for consolidating market leadership in this area. I've heard Johnson and Johnson has considered entering the area of diabetic supply by mail. Does anyone know if this is true, and what the status of their plans are? Does anyone know of any other company that could threaten PM's dominance in this market? Certainly there are lots of diabetics out there (>90%) who aren't getting their supplies this way, so potential for continued 30% growth is very real. Looking forward to tomorrow's trading! Thanks for all replies.