Message-ID: <1708729.1075845225103.JavaMail.evans@thyme> Date: Wed, 6 Jun 2001 10:40:46 -0700 (PDT) From: subscriptions@stockscape.com To: alewis@ect.enron.com Subject: Andrew - FaganReport / Trade Alert #14 / Guidant Corporation (new, speculative BUY) Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: subscriptions@stockscape.com@ENRON X-To: alewis@ect.enron.com X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst Andrew, This free service is brought to you by Stockscape.com ( http://www.stockscape.com ) THE FAGAN REPORT / http://www.faganreport.com OPT-IN EMAIL SERVICE TRADE ALERT #14 GUIDANT CORPORATION (NYSE - GDT) June 5, 2001 11:45AMET - emailed to TFR Trade Alert Subscribers NOTE - DELAYED DELIVERY: This information was previously distributed to Fagan Report Trade Alert Subscribers at the above noted time and date. Due to ever-changing market considerations - it may or may not be applicable at this time. TRADE ALERT #14 - Speculative Buy / Guidant Corporation (NYSE - GDT), currently trading at $38.00 with a target above $45.00 and a stop- loss at $34.20. Guidant Corporation (GDT) is a global leader in the medical technology industry providing innovative, minimally invasive, and cost-effective products and services for the treatment of cardiovascular and vascular disease. In short, GDT is involved with just about everything and anything used to prevent and treat heart attacks. With over 8,000 employees worldwide, it posted revenues in excess of $2.5 billion for FY00. Net earnings after tax were $374.3 million. Earnings per share came in at $1.24 on a fully diluted capitalization of 307,722,000 issued shares. Q1/01 numbers, for the three month period ended March 31/01, are on track to produce similar or slightly better results for FY01. Working capital at March 31/01 was $454.6 million. Total current and long term liabilities were $1.2 billion of which $350 million is expected to be paid off from cash flow during FY01. At its current price of $38.00, it has a P/E of 32. The only way to understand GDT is to spend an hour or two on its website (www.guidant.com) My thinking on this trade is that GDT will more than likely produce better numbers this year than it did last year. Yet, at its current price of $38.00 it is trading about 15% less than its 1999/2000 low of $45.00. If it gets back to $45, there will be a 20% gain on the trade. GDT's 52-week high/low stock price is $71.81/$33.00. As money continues to rotate out of the tech sector and other economy sensitive stocks, established medical companies like GDT should trade higher. Some subscribers get extra nervous trading higher priced stocks like GDT. Remember that price is not an important consideration. The only considerations that matter are the dollar amount of the trade and the resulting percentage gain or loss. If you normally limit your trades to $5,000 per transaction that's fine. Buy 130 shares of GDT. We have a 10% stop loss limit on this trade so you are risking about $500. The next reporting period for GDT is for the three-month period ending June 30, 2001. If the numbers come in better than expected, we could make 15% to 20% in 60 to 90 days. I'd be very happy with that on this trade. SUBSEQUENT NOTE: Wednesday morning, June 6, a day after this Trade Alert was issued, CNBC reported that Bank of America had just released a Buy recommendation on Johnson & Johnson. One of the reasons given for the recommendation was that J&J has increased its market share of the "heart surgical stent" market at the expense of GDT. I think that is the reason for the weakness in today's GDT market. The above recommendation on GDT remains unchanged, but one should try to get the best entry price possible. NOTE / DISCLAIMER All information published by The Fagan Report is for informational purposes only. As Editor, I, Brian Fagan, tell you what I am or would be doing if I had sufficient capital to do so. You read and/or subscribe to receive this information for whatever personal reasons you may have to do so. Nothing more is implied or intended. Nothing in this communication is, nor should it be construed to be an offer or solicitation for the purchase or sale of securities. Please see our complete disclaimer statement at: http://www.faganreport.com COPYRIGHT: Fagan Report Trade Alerts are copyright material. It is unlawful to duplicate, forward, or disseminate this information in any form whatsoever, without the written permission of the publisher. For copyright waiver, email your request to: info@faganreport.com . Wishing you all the best, The Fagan Report, Brian Fagan ********************************************************************** THE FAGAN REPORT OPT-IN EMAIL SERVICE June 5, 2001 You have received this information because you have previously subscribed to The Fagan Report complimentary opt-in email service at http://www.faganreport.com . Through your participation in this program, you receive all information sent to paying subscribers of The Fagan Report, but on a variable time-delayed basis. This is an "OPT-IN" email service, the cost of which is borne in part by company sponsors. Today's content is independent research, opinions, and commentary. It is not company sponsored. No compensation of any kind has been paid or received for its inclusion in The Fagan Report. ---------------------------------------------------------------- The information being sent to you is intended as a free, value-added service. 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