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

To: mmeggs who wrote (388)	10/27/1998 5:29:00 PM
From: Scott Overholser	Respond to of 410

mmegs - i agree with your fundamental analysis of ave. i am very bullish on ave. i believe tho that the whisper numbers were 0.90+ for ave's earnings. (your comparison to microsoft's earnings isn't apples to apples since microsoft posted earnings that surpassed even the highest expectations where ave's posted earnings were down sequentially and fueled fears of competition and declining margins.) i follow the teachings of william oneil and jessie livermore pretty much: don't argue with the price action. if the ship is sinking - get off first, ask questions later. most of the time the reason for the price decline is not obvious until after the damage has been done. we can always get back in at a later date. ave is pretty much a pure play where it's competitors are well diversified. i think that accounts for the performance of bsx, gdt, et al. i'm not mad. i was just feeling flip and couldn't resist the urge to take the jab. you have my apologies. i still don't know why you find my suggestion absurd. many times a company will post great earnings and immediatly experience a sell-off. buy the sizzle, sell the steak... (i love wall street one-liners.) :)

To: mmeggs who wrote (388)	10/27/1998 6:13:00 PM
From: Dave Chanoux	Read Replies (1) \| Respond to of 410

Perhaps I can articulate the opposite point of view (like a debate, nothing personal): AVEI has just taken on $600 Million in debt to acquire the Bard division. That is approximately $10 per share; annual interest expense I estimate at $.80 per share, before tax. Of course, one would expect the Bard business (estimated at $200 Million revenue per year) to generate some profit to offset this expense. BUT #1: At closing Bard says they sold the division to generate funds to pay down debt and buy back stock. Sounds like they would rather not be in the business. BUT #2: This has been a troubled division of Bard. I recall contaminated product, falsified records, indicted management, one plant closed and consolidated into the current operation. And it is located 3000 miles away from Santa Rosa in Billerica MA. (Please be skeptical of my memory, check for yourself). Add these BUTS to the risk of patent infringement and all the other things discussed here in the last few months and one may get an urge to sell. Does this hold water? Contrary opinions? Regards, Dave Chanoux