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Boston Scientific Corporation Message Board

  • PersistentOne PersistentOne Oct 31, 1998 6:56 PM Flag

    BSX All About Accounting Gimmics

    This management misses their number every
    quarter, that number being the guided earnings of six
    months earlier. This valuation issue is all about
    continuing to screw shareholders by trying to write as much
    off as possible and then be able to report distorted
    higher earnings later.

    A long process but
    eventually BSX will see the teens.

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    • BSX is doing what all companies do when acquiring
      companies, they're attempting to write off as much as
      possible in a one time charge so as to reduce the goodwill
      amortization charge later. Thus reducing the future drag on
      earnings. Wall Street expects and demands this. I don't see
      this as screwing shareholders, but instead, trying to
      maximize share price.

      Why would management, who
      still have extremely large ownership in the equity of
      the company want to screw shareholders when they have
      the largest positions?

      If BSC had no SCIMED
      division whatsover the stock would still be worth more
      than the "teens". The other divisions continue to be
      consistent growth engines.

      I agree that BSC has
      consistently missed projections and should do a better job in
      managing analyst expectations, however this has little to
      nothing to do with the overall value and strength of the
      company. They've always tried to act like a private
      company even after going public and they have paid a
      price for that through missing external projections.

      Think about their competitors and who has positioned
      themselves better than BSC. Guidant, Medtronic and J&J will
      all hold significant market shares in the various
      markets in which they compete as will BSC. There will be
      room for everyone as long as they all continue to

    • bigger better faster... bigger better faster...
      bigger better faster... bigger better faster... bigger
      better faster... bigger better faster... bigge bette
      faste...bigge bette faste...bigg bett fast... bigg bett fast...
      big bet fast.

      what BSX wants its investors to a big bet fast.

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