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Re: [IP] MM Shareholders?

Hi Lindsey,

I only bought in the $55 range as well - I sure wished I had
bought lots of it when it was $25!  Am going to continue to
watch it and will consider buying more.

Stock hit $92.5 per share in October and has since declined
to around $60. $55-$65 looks like a stabilized range (for
2000 at least).  Per my Schwab report card for the stock, 3
analysts have it at a buy and 10 have it at a buy/hold. P/E
multiple is very high at 126 times earnings indicating that
the investors think that this company will continue high
growth. This is also a very high risk stock since the
medical device industry P/E multiple is around 40 x
earnings.  MiniMed's EPS growth has been strong at $0.12 per
share for 1997, $0.23 in 1998, $0.35 for 1999 and street
projections of  $0.56 in 2000 and $$0.82 in 2001.

One analyst's report placed insulin pump market growth at
40% per
year, noting that MM's stock price growth will be dependent
on its new product pipeline.  Another report noted that the
recent run-up in price may be due to the bg sensor, infusion
devices for hypertension (MM has a relationship with United
Therapeutics to develop infusion therapy for pulmonary
hypertension), Lilly's intention to reformulate and package
insulin in pre-filled cartridges with distribution by MM,
MM's development of a "disposable patch like pump"for T2
Diabetics, coverage of pump therapy by Medicare and MM's
development of a closed loop system.

Although the beta of .8 is good.  My take is that the stock
doesn't move with the market, but moves based on actions
being taken by the company (i.e.: product expansion &
business expansion) as it re-invents itself beyond just the
current product offering.  I'm really intrigued by their
product expansion into non-insulin pumps.

One additional benefit of being a shareholder - I can
complain to the company as BOTH a customer and an owner!

To those following this thread - keep in mind that these our
only my opinions - Invest at your own risk.

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