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Biotech / Medical : Ocular Sciences (OCLR)

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To: EyeDrMike who wrote (13)6/10/1999 8:26:00 PM
From: Alan Villalon  Read Replies (1) of 36
 
I have been following VISX, the leader in eye surgery, and they stock is definitely doing well on the the increase in eye surgeries every year. However, DRAGONPAWN's remarks are quite unfounded. Just because eye surgeries are the latest craze, that doesn't mean OCLR is doomed. The growth area is laser surgery but the value play may be OCLR.

History shows that companies are able to reinvent themselves given any circumstances. OCLR has several advantages over laser surgery: 1. contacts are relatively cheap compared to several thousand's spent on laser surgery 2. it has a vast distribution network and market share that has become household name in the eye market 3. Not every city can offer laser surgery because of cost and population constraints (many big cities only have 1 or 2 laser centers).

Laser surgery will experience tremendous growth in the upcoming years since it is its infancy. However, OCLR will only gradually loose market share. Hair removal via laser was the hot thing in the early 90's but you don't see every hospital or consumer dropping their razor blades to jump onto that bandwagon.

OCLR has shown to grow over 20% annually. Given the latest competition, management must find new ways to increase profits and margins. Management may be the downfall of the company, not laser surgery.

By the way, I am neither long or short OCLR. I just wanted to remark on dragonpawn's unfounded remarks.

-Al
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