Value Microcaps Motherboard

[whyme2005]

IOX $2.2 PROFITABLE LOW-FLOAT BIOTEC. KEEP AN EYE ON IT!!

According to Barrons, IOX will report its 3Q 2005 earnings results in the 4/25/05 and 4/29/05 time frame.

IOMED (AMEX: IOX) is a low-float, consistently profitable biotec company and a leader in the development, manufacture and sale of active transdermal drug delivery systems. The company has reported 10 consecutive profitable quarters. IOX reported net income of $363,000, or $0.05 per diluted share, for the first half of fiscal 2005, compared with net income of $330,000, or $0.04 per diluted share, in the comparable prior-year period. Revenues in 2Q 2005, as forewarned by the company, were weaker than most quarters due to a reorganization of its dealer network. The company expects improved performance in the last two quarters of 2005 because of an improved dealer network and strong sales of new products launched within the last 2 quarters.

The Company generated operating cash flow of $651,000 during the first half of fiscal 2005. Since June 30, 2004, working capital has increased $560,000 to $8.7 million. Shareholders' equity increased $363,000 to $9.8 million during that time. Total cash, including restricted cash, as of December 31, 2004 was $8.7 million or $1.3/share. IOX's current float is only about 4 million shares.

IOX is undervalued under $4/share if you consider that it is consistent profitable, it has a very strong balance sheet, and it is a leader in its niche market..and don't forget, its very low float.

IOX's stock price never recovered after ELN, IOX's largest shareholder until recently, started selling big chunks of stocks with regularity in the spring/summer of 2004 (see bottom weekly chart).

http://stockcharts.com/gallery/?iox

Investors can not be blamed for not wanting to invest in IOX because of the in fear that ELN could start dumping shares any day. That has changed 180 degrees recently. The Ridgestone Corp. (essentially a trust) has acquired all of the remaining ELN shares (and more) two weeks ago. According to Barrons, .. "Ridgestone Corp. wants Iomed to use its "significant cash balance more effectively." Ridgestone offered several options that, it asserts, would enhance shareholder value. Among them: acquiring a complementary business. If no suitable acquisitions are available, Ridgestone wants the company to make a one-time distribution of at least $6 million in cash to shareholders and to repurchase some of its shares. Ridgestone owns 1,058,400 million shares (16.1%)...." For more details, please read the latest IOX filing:

http://www.sec.gov/Archives/edgar/data/1041652/000110465905015712/a05-6501_1ex2.htm

What a change! From a troubled company like ELN essentially shorting the stock, to a proactive entity putting immediate pressure on management to increase shareholder value.

I expect good things for IOX in the future. The upcoming 3Q 2005 earnings release is sure to be a major improvement over the 2Q revenue/income results based on the comments of the company CEO in the last two earnings releases.

Take a look at IOX's strong financial performance:

http://finance.yahoo.com/q/is?s=IOX&annual

Also view the company's strong balance sheet:

http://finance.yahoo.com/q/bs?s=IOX

IOMED (AMEX IOX) is a medical device company involved in developing, manufacturing, and marketing of proprietary drug-delivery systems employing the principle known as iontophoresis. Iontophoresis is an effective and painless non-invasive method of enhancing and controlling the transport of water-soluble ionic drugs into and through the skin and other body tissues using a low-level electrical current. IOMEDs patented products are to avoid the pain/infection that may accompany needle insertion.