New article on POSC from biomed reports.com (READ HERE)
POSC: Damned if you do and damned if you don't
Written by Peter DePalma
Friday, 14 May 2010 05:47
After alerting members to Positron Corporation (OTC:POSC), the stock roared from $.06 to a fifty-two week high of $.30. Shortly after that, we advised our readers and subscribers that they should sell their positions in POSC before their scheduled press conference fearing that the event would become a "buy on rumor sell on news" event.
We've come back from vacation to an email box full of both love and hate mail, thus the title of today's article.
Apparently, our advice to "sell" prior to the press event did not go over well with many of the longs who felt that we were sending mixed messages about the stock, but after carefully considering what many day traders do with these "forward looking" types of stock plays, my editors felt strongly that we should advise our readers despite the back lash and they did.
As it turned out, things got even uglier than any of us expected when the penny stock company decided not to announce their highly anticipated partnership details to an audience of reporters in New York's Nasdaq Marketsite. Most of the reporters covering the event didn't even blink, but the tens of thousands of investors who were following the conference vis webcast immediately responded with a huge share dump. That resulted in the next wave of attacks and false accusations about promoting and/or pumping and dumping the pick. In the end, those of us who followed our own advice and erred on the side of caution won big while those who decided to gamble more speculatively than others paid an ugly price.
At the end of the day, the facts remain: POSC is a solid company that has been around for over 27 years. The CEO may need more media relations training given his very rough delivery at the podium, but reporters at the event (none of whom even asked about the partnership details that investors were craving) seemed to take the most interest in management's announcement that POSC anticipates generating over $200 million in revenue within 18 months and over a billion in revenue within 4 to 5 years. This is a stock that many of us have jumped back in on and is still available for mere pennies per share.
Eventhough they fully intended to when they news conference was scheduled, POSC could not announce the name of the key partnership they wanted to reveal at the press conference for a number of reasons. As we understand it, at least one contractual one and several strategic. As many disapointed and angry investors called and cried for full disclosure under threats of lawsuits, the company followed up with a cryptic press release about the matter in the days following the conference and although no one at the company can go on record publicly about it for the same reasons we mentioned, we have confirmed to the best of our abilities and based on candid interviews multiple sources, that they have partnered Covidien (NYSE:COV) and that they are also in the process of aligning with other big board companies for some very important strategic partnerships on the pharmaceutical side of the business. Furthermore, it's worth considering that any one of these strategic partners may chose to take over or buy the company; especially once the new network of automated imaging drug dispensing machines is set up.
At one point, one of Positron's newest allies had apparently even "threatened them" before deciding that joining forces might be a better way to respond to their innovative nuclear medicine's dispensing and distribution technology. The bonding experience with that company is still shaky, but much more friendly now according to those familiar with the situaiton and it definitely played into why the company decided against the public revelations.
If one looks at POSC and it's FDA approved PET Scan imaging technologies, the back orders for systems, and the shifts not only in the marketplace, but also the reimbursement as well as medical and technical needs of the cardio and oncology imaging space, it's clear to see that the company is not only undervalued, but vastly undervalued. Look up IMGG and you'll find a company that traded at close to $2 per share this year based on only "half the promise" that POSC offers today. That company has submitted for FDA approvals several times and still have no clearance, yet they still trade today at nearly fifty cents per share.
Is the company trading higher than it was when we first covered it? Absolutely and it is difficult to argue that the share price will not continue to rise as future revenues, orders and developments are announced. Do we continue to see it as a multi-bagger? Of course we do. Especially given the fact that the entire space they deal in is changing and that they are positioned without a single competitor as the leading company within that space.
Disclosure: Long POSC
