Multi-Billion Dollar Markets Look Ripe for Dominion(TM) Product
BURBANK, Calif. -- Imaging3[TM] Inc., (OTCBB:IMGG), developer of a breakthrough medical imaging device that produces 3D medical diagnostic images of virtually any part of the human body in real-time, today reports on the size of the medical imaging market sector and discusses the marketing focus for the company's Dominion[TM] product for the coming year. The company's CEO also provides some insight into market sectors outside of the medical marketplace that are thought to hold promise for the company's products.
The medical imaging equipment market has been defined as an $8 Billion annual market with expected growth to $10 Billion by 2008.(current market is $16 Billion Market) There are over 11,000 hospitals and medical centers and approximately 4,000 freestanding surgery centers throughout the United States.
The hospital market consists of University Hospitals, which are the largest facilities encompassing entire campuses with bed sizes in the 1,000 bed range. These hospitals could each purchase several Dominion products to service their surgical suites, most having more than four suites and as many as a dozen. They would most likely purchase systems for use in their trauma, ICU/CCU, oncology, research and interventional radiology departments. Next in size are regional medical centers/hospitals, some being as large as University Hospitals with the average bed size of 300 beds. These facilities also have very large surgical suites and would most likely each purchase several Dominion products to service them as well as their trauma, ICU/CCU, oncology and interventional radiology departments.
Due to their mobility and use of standard wall power, the flexibility to move throughout the facility and better service the facility's needs while retaining a high ROI, the smaller local community hospitals and medical clinics could each purchase several Dominion products.
A more recent phenomenon in the medical care world, free standing surgery centers have been extremely profitable over the years with outpatient surgery techniques being favored by insurance providers. These centers could potentially purchase several Dominion products to increase their ROI per procedure. Another benefit would be the ability to use the CT emulation aspect of the Dominion allowing a new form of revenue generation not previously available to these rapidly expanding facilities.
Dean Janes, Imaging3's CEO, shed some light on additional markets that are expected to be lucrative sectors for the company. "Outside the medical equipment market are equally lucrative markets such as commercial non-destructive testing of manufacturing parts, homeland security applications, military applications and aerospace. Non-destructive testing is a multi-billion dollar market, with applications ranging from imaging printed circuit boards, PCB's, to wheel rims for cars."
Using 3D real time imaging would increase throughput and better detect defects in manufactured parts, increasing quality and decreasing costs in the manufacturing process. Homeland security applications range from real time 3D baggage scanning to large cargo container imaging. Military applications range from use of the Dominion product in MASH, CSH, EVAC and other medical applications, to uses in their aerospace airframe stress detection systems for aircraft manufacture. Aerospace - both commercial and military - could benefit by scalable Dominion products for all types of airframe stress detection for aircraft and missiles.
Considering the Medical market in US only:
hospitals and medical centers - 11000 ( can purchase 4 to 12)
freestanding surgery centers - 4000 ( multiple units)
consider 1 unit only,
15000 * 550000$ = $8.25 Billion sales
considering 50% profit margin(as per CEO comments)
Net earnings could be as hight as $4 billion.
considering 375 million shares outstanding 4000/375 = 10$ EPS(approx)
using 20 P/E it will be 200 $ price per share
Do you think Toshiba or GE or other big BOYS will miss out this buyout opportunity. Defenitely not. Bidding war will begin as soon as FDA approval comes in.
Advantages: No other competitor, mobility, CT scan, Low dosage, cheeper price, other areas(homeland security, military, non-destructive testing, aero space etc)
Get in when you get a chance at this price level.
Last friday VASO.OB gained 340% because of the FDA approval news!
Price on FDA approval - Buy/Add more - Don't miss
Per the CEO's comments this a $16B dollar industry that he believes his company can capture at least 5% of (ie 800M) in 2 years and even 10% in 4 years (per investorshub.com comments). I don't have enough expertise to measure the target price more than to say that $3 - $5 sounds fair and might even be conservative.
-FDA approval: certainly some investors will be so overjoyed they will sell and the price will jump perhaps as high as $5
-Production Deal / Sales of the Dominion: this company has the ability and warehouse space to manufacture the unit itself. Personally I wish the compay would do so, because that would generate a long term cash flow and perhaps even dividends, etc.
-License Agreement or Buy Out: It's my understanding that IMGG has already turned down some small pre-FDA approval offers. If the CEO thought this was not going to be approved, he could have sold or even declared bankruptcy etc. by now. Since there are many uses for this technology (eg - airport screening device, or military hospital use) AND software updates might provide additional revenue, imo it seems entirely possible that a buyout offer of $5-$7/share could occur. Even if the FDA approves the deal (which seems likely – few days away ), and a buyout brings "only" $3-$5/share instead of $5-7/share, that's 5 to 7 times the current price of this stock.
Last run up:
Volume: Close:
7,010,800 1.66 16-Nov-09
17,715,200 1.46 13-Nov-09
3,481,000 1.22 12-Nov-09
2,638,200 0.98 11-Nov-09
3,580,900 1.00 10-Nov-09
6,833,200 0.99 9-Nov-09
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