Tao Levy
Tao Levy
chatter couple increasing payment prior seen system
There is increasing chatter that when the in-patient payment system comes out in a couple of weeks, that it will be more controversial than we've seen in prior years.
board boston certainly company few force gamble johnson pay recall risky scientific somewhat strategy support surprised taking weeks worth
We are somewhat surprised to see Guidant's board support Johnson & Johnson's offer. Recall that this is the same company that thought Guidant was only worth $63 a few weeks ago. Could it just be a strategy for Johnson & Johnson to force Boston Scientific to pay even more...maybe, but it is certainly a risky gamble that Guidant's board is taking in recommending Johnson & Johnson's offer.
debt expect increase management offer quickly
We would expect BSX to quickly come back with a new bid, but importantly, we do not expect management to increase its debt or offer more equity.
believe buyers difficult
We find this very difficult to believe and would be buyers of ISRG on the weakness.
accelerate billion cash company expect net pursuing shares sideways surprised trade until work
We expect the company to put its $14.5 billion of net cash to work in pursuing acquisitions to accelerate growth. That said, we would not be surprised to see the shares trade sideways until a significant acquisition is announced.
business fact ignore increases jude might offer point relative serious size value
As the offer size for Guidant increases and the relative value of its ICD business increases, we can't ignore the fact that at some point it might make sense for one of the two contenders to take a serious look at St. Jude Medical.
ask demand hospitals mean might price question reduction supply whether
The big question is whether hospitals will demand a price reduction on their supply costs. They might ask for it, but it doesn't mean they will necessarily get it.
address boston efforts management percent scientific time warning
At a time when Boston Scientific management should be devoting 100 percent of its efforts to the Guidant transaction, it now also must address the warning letter.
hospitals might power push
It might give hospitals some more power to push back on prices.
behind bid bit count johnson putting
I still wouldn't count Johnson & Johnson out from putting another bid in. They're doing a little bit of lobbying behind the scenes. They're interested.
ability bottom business company continues face impress line protect temporary
The company continues to impress on its ability to protect the bottom line in the face of temporary slowdowns in one or more business segments.