Here, verbatim, is a post I made last July. Little has changed except the price range. I was right in my comments back then about the need for outside help. Despite the NSE and the posted letters from the FDA, everything I stated then continues to be the case today. I still hold my million+ shares, and still believe that we will see $5. It's just taken longer than it should have taken...
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This stock was recommended to me by a doctor that I know very well and trust completely.
Let me summarize what I've found out and then maybe people can tell me where I might be wrong. Please, please, please - keep it constructive, useful, and based on fact.
The Device:
Invented 8 years or so ago.
Can provide 3D imaging in real time - no other device can do this.
Can also do CT functions.
Device is portable, can fit through standard door, and runs on standard 110v outlets.
It emits about half of a normal x-ray.
Patent is held and is pretty tight.
Was seen by Oregon State University and they were impressed enough to want to be first site to use when approved and they signed a contract to that effect.
Has been reviewed by radiologists as part of FDA approval cycle.
Winner of Frost and Sullivan award for Product Innovation of the Year two years ago.
The Company:
Founded by Dean Janes in 1993 who is currently the CEO. He served in the Army as a biomedical technician and has over 20 years of experience as a biomedical engineer. Worked for Center for Health Resources as Senior Field Service Engineer, as National Technical Support Engineer at Toshiba, as Senior Field Service Engineer at OEC Medical Systems, and as X-ray Service Engineer for Kaiser Harbor City Hospital. Degree in Bio-Medical Electronic Engineering at University of Colorado Technical Institute.
He has submitted three 510 applications in the past but they were not as complicated or involved as this one.
Christopher Sohn is President and COO. He has been Director of Imaging3 Inc. since 2000 and serves as President and Chief Operating Officer. Mr. Sohn has 20 years of experience in international trade. He has worked with a number of biomedical equipment manufacturers from Asia Pacific, as well as distributors throughout Latin America. As Chief Executive Officer of DMI (1995-2000) and ISOL America (2000-2001), he was responsible for establishing dealer networks throughout Latin America for several Korean medical equipment manufacturers. Mr. Sohn majored in Biochemistry and Computer Science at the University of California at Los Angeles (1978-1982).
The Stock
Market Cap of $107 million despite virtually no sales. Outstanding shares of 375 million of which about 60 million shares are held by Mr. Janes and 20 million or so held by Christopher Sohn, COO. The stock held generally under $0.10 until last fall when, on speculation, it jumped up to $1.95. In the next 2 months it dropped down below $0.40 and has stayed in the $0.20 to $0.80 since.
A private placement was made right before the jump of over 100 million shares. This was held to raise capital. Apparently it helped fuel the jump last fall as word spread and, ironically, helped spur the drop recently as these restricted shares became unrestricted.
FDA
This has been a nightmare and appears not to have been managed well from the company who refused to bring in outside help. Excuses were made about the FDA and they appear to be plausible and have been experienced by other companies in the industry. A new team has had the application since the beginning of the year and their normal time frame for approvals is just about right now. Many feel that approval is at hand and this is, by far, the largest question around the stock. Apparently there are experts, some of whom I've communicated with, from competing companies who say it is only a matter of when, not if.
Financials and Operations
Company has experience in the manufacturing side through its refurbishing business. Space is available for production of approx 10-12 units per month. Talks have been held with overseas manufacturers to significantly expand this production and company, through Mr. Sohn, has experience manufacturing and distributing overseas. Machine uses essentially no proprietary parts so can be assembled anywhere with "off the shelf" parts. Demand appears to be high based on statements from Mr. Janes.
Price of unit will be approximately $550,000 with more income from service contracts. Financing appears to be available to cover the current negative-cash flow operations through 2011. Capital has been lined up for production once FDA has approved.
Summary:
My calculations would show that sales should be able to reach $200 million within a year based on internal and external manufacturing capability and pent-up demand. This could expand very significantly in subsequent years unless a buyout occurs. Gross profit should be around 50% and net profit should be about 25% (this is a guess). Based on outstanding shares and normal P/E's (this is conservative based on revolutionary nature of this invention), I have to believe that the stock should be trading at least at $5.35 within a year.
Okay, what am I missing?
