Replies to post #7579 on Positron Corporation (POSC)

[BigGreen101]

POSC may go for a R/S down the road.

Here is what I currently see

1) collaboration with Covidian will generate revenues, but not as much as expected. From 10Q "On August 18, 2010, the Company announced a strategic alliance with Covidien a large global healthcare company for product development of its proprietary dose dispensing devise. The Company will act as an independent contractor to design and develop a new version of its proprietary automated dose dispensing equipment specifically designed for use exclusively with Covidien radiopharmaceutical products."

To me, this means Covidien will be spending a lot of money to develop the potential next generation equipment, using POSC proprietary technology. I assume Covidien will sublicense it from POSC. This is done for drugs all the time. Covidien will be spending a lot of money and will get most of the profits.

2) POSC is moving ahead with its own business model, which appears to be two parts - selling machines and opening offices (current job listing indicates that). This seems like the Covidien's business that was recently sold.

3) Share structure -
This could go in several different direction. POSC could eventually do a R/S, share buy back or continue to increase the share count. This all depends on how the above parts of the business work out. If the company generates profits, then there is no reason for management to increasing O/S count.

I think the company has signs of a real business model that will continue to grow over the next few years. This is not a short term investment IMO. The O/S issue will not matter much, unless POSC wants to uplist to a higher exchange. This may be in 1-2 years.

Just my thoughts.