Specialized Health Products International Inc. (fka SHPI)

[MikeDDKing]

Unfortunately, I sold all of my shares of SHPI today. An 8-K came out this afternoon indicating that TYCO lost their new lawsuit with BD. Here is a link to the 8-K:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001144204-07-065438&Type=HTML

This was one risk that I was concerned with with SHPI. According to the 8-K they will take a $250K non-cash charge in Q4 for their share of the legal costs. Tyco has indicated that they intend to appeal the jury's decision.

The bad thing is that ultimately this could mean that Tyco discontinues the Magellan product line. If they lose the product line I believe they will ultimately lose something like $250K in royalty revenue per quarter. Having said that, this could also be settled by a licensing agreement between Tyco and BD so it isn't necessarily a big problem.

I still like the company and may repurchase the stock but I want to wait until the smoke clears before repurchasing.

Mike