OK, I looked at EYE. Technically, I agree with Kahlua trading position on the technical side (buy in the $19/$20 area with a stop at $18.30, my target sell though is higher, if we hold $18.30, I think that there is a good chance to go just under $30 (make it $29 or so) in the next six to nine months. Fundamentally, however, EYE is very different from either the bu$$ or QCOM. Sales of systems and license revenues are stalling. Maybe their new system will change that (or the market may perceive such a change). But even if it is so, the market is pretty well saturated (I think that they derive revenues from about 5 MM procedures yearly, and since that is not covered by insurance, that and what ACL and BOL get is "pretty much it"). Their valuation discounts tripling or more of that and this is not likely , IMTO. By the middle to the end of next year, they may actually reach peak revenues for the current cycle, and I doubt that will exceed $200 MM annually, a market cap of a $ billion plus is just too rich, particularly in view of the fact that they are quite cyclical (revenues can plunge in a bad consumer led recession in 2005). Last, I already have a two vision companies (COO and QLTI) in my "stable", COO is very fairly valued in view of their growth and earnings, and QLTI has other tricks in their bag of photodynamic therapies, apart of their macular degeneration treatment. EYE is not high on my priority list.
Good luck.
AI
