can anyone help? why the sharp drop in sn.price yesterday (15/9/04).i've searched all over for a reason but can't find one.Is it just a lack of interest or what? they still look a good bet to me mid-term

From Killick & Co

Smith & Nephew hit by US subpoena

Tactical BUY

Price: 498p (-24p)

Risk rating: 6

p/e: 20.2

Net dividend yield: 1.1%

Market cap: 4.7bn

(p/e and yield are prospective)

The US Department of Justice has issued a number of subpoenas on the medical devices industry, as part of an investigation into service contracts in the sector which dates from 2002. US stocks Stryker, Johnson & Johnson and Biomet fell by about 5% in after-hours trading last night. In London, orthopaedics specialist Smith & Nephew is down 24p to 498p. In a short statement Smith & Nephew has stated that the US Attorneys office has requested details of the agreements between orthopaedic surgeons and S&Ns orthopaedics division. Its too early to gauge exactly how the company will fare in the investigation, but we think it unlikely that any fines will turn out to be punitive in the context of expected profit this year of about 300m.