Bad bad news coming soon. Insiders know the drill thats why theres so much insider selling. Funds are dumping this hard. Don't be in until this stock falls back down to $6.
Heres a funny I read.
never fails to amaze me...
people losing their ass on this mismanaged, out-of-favor, going-nowhere company
so what do they do?
they buy some more as the price keeps dropping
reminds me of the losers...
and i do mean losers...
at the track who, as the day wears on and they get deeper and deeper into the hole, start playing longer and longer shots, hoping to turn it all around with a big win
but as the last race goes off
the loser loses again
while winners laugh and high-five one another, BSX longs are looking through the ashtrays for smokable butts
and picking up discarded tickets off the floor in hopes that someone threw away a $2 winner
Investment risks particular to Boston Scientific include:
➤ Reliance on a single product line. The expected performance of the TAXUS stent in
2005 means that 40% of sales and 50% of EPS will come from a single product line. No
other large-cap med tech company has this level of sales and EPS concentrated in one
product line and recent data has led to questions about the safety profile of this stent.
➤ Department Of Justice investigation. Boston is still the subject of an ongoing DOJ
investigation relating to manufacturing changes to the NIR stent that occurred in 1998.
This investigation should heat up later this year and could result in criminal charges
and/or a hefty settlement.
➤ Patent risk surrounding the TAXUS stent. There is
also risk of an injunction against TAXUS Liberte.
➤ Competitive ASP pressure in the DES market in excess of our forecast. We expect
US DES ASPs to decline by 5% annually through 2008. Primary DES competitor JNJ is
larger and better capitalized and has already been using price to win back DES market
share in the US.
Attorney general about to slap some more millions off the bottom line; major losses patent cases (NIR, Express, Taxus and Liberte), chance of injunction against Liberte (both bare and taxol when that gets approved), reversal of injunction in Netherlands; major Medinol loss upcoming; likely loss (buy all analyst opinion; even GS) on Ding case; Aug. hearing likely to hit with willful treble damages; BSX dropping stent prices quickly to try to keep from continuous loss of DES market share (now estimated at 52% (down from 70% and still falling).