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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: DlphcOracl who wrote (42342)5/27/1999 10:32:00 PM
From: Jenna  Read Replies (2) | Respond to of 120523
 
MDT.. Last time someone did an in depth like this it was VRLN and it was up 30% the next day. I do like medical stocks, but I've been out of MDT for so long, I was waiting for a chance to reenter. I have just the slot to fill for MDT.. I'm not sure if you are familiar with ADRX but I just a successful 13 point run with it and waiting to get back in. OCLI is another I picked up after it sold off on the good report. But MDT and OCLI are not for trading but to hold, although I do like to trade the options and keep the stock.



To: DlphcOracl who wrote (42342)5/28/1999 8:16:00 AM
From: HeatherN  Read Replies (1) | Respond to of 120523
 
DlphcOracl,

MDT has made recent acquisitions into the neurologic device market attempting to expand their business into products such as spinal cord stimulators for pain etc. Although these items have a high profit margin and are gaining acceptance and popularity, insurers are becoming increasingly resistant to paying for these. A typical total cost for the insurer is between $15,000 and 25,000 for these devices. Pain management has been largely untouched by the insurers as they have focused on other areas to trim their costs such as cardiac stents. It is inevitable that pricing pressure will soon come to these neurologic areas as well.
As a user of MDT's products, I am cautiously optimistic but still stay away from the stock because of the current health care environment (Insurers holding much of the control for pricing pressure). MST's future revenue growth is uncertain to me at this time.
Just an end users viewpoint :)
HeatherN