Penny stock company will run if partner turns out to be Covidien
New York, NY - In the last two weeks, there have been all kinds of rumors and speculation surrounding Positron Corporation (OTCBB: POSC) and a potential partnership with a "big NYSE traded company." Those rumors may finally be made official today.
Most analysts believe that yet-to-be announced partner to be Covidien (NYSE: COV), the multi-billion dollar, worldwide leader and healthcare industry distributor whose shares trade in the fifty-dollar range on a daily basis. The site which is most often credited for breaking the news about the potential marriage between the penny stock pick and the profitble big board player, has also reported on a number of initiatives which could turn out to be very profitable for the company.
POSC's perfectly timed position as the undisputed leader in Cardio PET imaging already makes the company attractive to investors, but its revolutionary Pharm-Assist® automated radiopharmaceutical distribution device seems to be what is driving most of the radio pharma industry interest to the company.
"Our machine is not only a very attractive option for patients and doctors, but also to many of the current companies and drug manufacturers who deal in the cardiac and oncology imaging space," CEO Pat Rooney said in a recent interview. "Instead of taking on the expense of opening up a brick and mortar location for $3+ million and being worried about the expensive overhead and personnel costs of selling radiopharmaceuticals, we can install this inexpensive, automated device that is compliant with all the U.S. rules and regulations for safety and exposure issues. It works well in emergency rooms, in cardiology offices, etc. There are many benefits to it, including the fact that it saves a great deal of money, gas, and time. In addition, if you're trying to get a dose and you're the 10th person in line ordering, you may not get the dose. With our system, you're guaranteed to get a dose."
The fact that the company has chosen the Nasdaq Marketsite as a lauching platform for today's annouoncements tells us that the news must be pretty significant. Otherwise, a simple press release would have been enough. It also tells us that the new conference could turn out to be a better-late-than-never coming out party for the 27 year old company.
Shifting market conditions in the lucrative Cardiac Pet Scan sector are evident and difficult to dismiss.
"The standard of care throughout history has been SPECT technology, but really it's inferior to our PET technology," explained Rooney. "The financial reimbursement for these services from places like CMS, Medicare and Medicaid have just increased PET Reimbursement and decreased SPECT reimbursement."
A worldwide shortage of Molybdenum - a necessary isotope used for SPECT imaging is also driving more customers to Positron according to the CEO. During the last three months alone, requests for proposals at Positron have increased three-fold.
In the wild-west-like world of over the counter stocks, Marketmakers and shorts have kept POSC shares down but it may be difficult for them to continue doing so after today's news conference. That is especially true if it turns out that partnership and all it's rumored details are real and substantive.
Sentiment : Strong Buy
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