LCAV risks according to Taglich:
Risks
Competition
As laser vision correction becomes more widely accepted, the number of ophthalmologists who can economically
justify purchasing their own excimer laser may increase. This would increase the number of competitors, which
may have an adverse affect on LCA-Vision’s business.
Market acceptance
Another factor that could have negative implications for the Company is whether laser vision correction surgery
can achieve broad market acceptance. Acceptance may be affected by concerns relating to its safety and
effectiveness, general resistance to surgery of any type and the effectiveness of alternate methods for correcting
refractive vision disorders.
LCA-Vision, Inc.
Taglich Brothers, Inc.
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Potential lawsuits
Since laser vision correction procedures involve the risk of physical injury to patients, the potential for lawsuits
against LCA-Vision cannot be ignored. Malpractice or other claims brought against the Company could have a
negative impact on operations. With the primary reliance for insurance coverage on the ophthalmologist, there
can be no assurance that ophthalmologists will continue to be able to obtain sufficient insurance.
Stock price volatility
Shares of LCA-Vision have exhibited high price volatility in the past and are likely to remain quite volatile in the
future. As this is typical with growth stocks, it is further exacerbated by current market conditions. Micro-cap
stocks in general have many risks that are not as prevalent in larger capitalization stocks.
Limited liquidity
With 13.4 million shares outstanding and 8.9 million in the float, liquidity issues must be considered. Average
daily volume has been approximately 200,000 shares. Significant trading in these shares could create large price
swings. Liquidity risk affects most microcap companies and can be characterized by low trading volume, high
volatility of the stock price and a wide bid-ask spread.
Miscellaneous risks
The Company's financial results and equity values are subject to other risks and uncertainties known and
unknown, including but not limited to competition, operations, financial markets, regulatory risk, and/or other
events. These risks may cause actual results to differ from expected results.
