STOCKS FOR TOMORROW *****SUMMARY of PDTK
NOVEMBER 1996
This an article written by Mark Shultz at
stocks4tomorrow.com
Pay attention to the Internet Mall.
Pacific Diagnostic Technologies, Inc. (PDTK) is involved in one of the
fastest growing segments of the medical industry, which is the
development, licensing and marketing of proprietary products which
provide physicians with immediate diagnostic results at the point of
patient care. Such tests are called "stat" tests. "Stat" is the hospital
jargon for immediate. The Company's Stat K analyzer is an inexpensive,
FDA approved patient-site potassium test, providing results in two
minutes. This is in contrast to hospital and other
in-laboratory tests that require equipment that is stationary,
considerably more expensive, and often takes from 45 minutes to as
much as several hours to provide results.
Potassium is second only to glucose as the most frequently requested
stat test. Like glucose test kits, the Stat K is fast, accurate, inexpensive,
portable, reliable and easy to use. The Company views the Stat K
system, which has no competition in terms of cost or mobility, as the
logical first step toward a family of stat
tests. In addition to potassium, test sensors will be available to analyze
for sodium, lithium, sodium/potassium/chloride, lead, acetate and
magnesium with only minor programming changes.
Investor interest in and expectations for this industry can be best
described by the market valuations Wall Street has given stocks in this
industry. I-Stat Corp. (NASDAQ:STAT) develops, manufactures and
markets proprietary blood analysis products that provide physicians
with immediate resuts. I-Stat has a market
capitalization of $220 million with sales of $20 million and has never had
any earnings. Diametrics Med, Inc. (NASDAQ:DMED) which has
developed a proprietary blood chemistry testing system has a market
capitalization of $75 million with sales of $2 milliom and no earnings. It is
obvious that Wall Street has a very high level of expectations for this
industry. Pacific Diagnostic Technologies, Inc. Has a market
capitalization of less than $10 million with projected sales in excess of $7
million and with $1 million in projected earnings which is about $.30 per
share. In addition to marketing products to physicians, hospitals and
other conventional medical facilities, the Company is giving serious
consideration to acquiring or licensing products to penetrate the
burgeoning alternative medical market, which encompasses
chiropractors, holistic doctors, natauropaths, acupuncturists,
nutritionists, providers of vitamins and supplements, health clubs, fitness
centers and sports medicine clinics.
As a move into one of the hottest fields in the marketplace, the Company
announced in Mid-August that they have acquired an Internet virtual
mall designed as an international marketplace for universities to
advertise, sell and license their technologies, patents, copyrights and
other intellectual properties. The new
mall will make it possible, for the first time, for companies, individuals
and universities themselves to search the world efficiently, effectively
and economically for new or little-known technologies to acquire, license
or commercialize into viable businesses.
This is a very exciting opportunity to combine the Company's
technological skills with the newest, cutting edge marketing technology
to create a highly significant profit center. The opportunities for
companies seeking new technologies is apparent. This marketplace will
also provide entrepreneurs seeking to develop
new businesses by acquiring or licensing technologies or software
developed by others. Universities will also benefit because the mall, in
effect, will be a catalog of the many thousands of intellectual properties
developed by universities throughout the world. The catalog will be
available to everyone. This will be the only such
service available. The technology that drives the virtual mall will make it
possible to request specific technologies and to enter a multitude of
parameters, such as prices and applications, and to have only the
information requested presented, despite the fact the information may
have been obtained from several
universities.
Ultimately the mall will serve as a "clearing house" for a variety of
university functions and activities, including student applications,
employment searches and student and faculty exchange programs. The
mall should be up and running early in the fourth quarter of 1996 with
approximately 40 universities on board. The
mall will be housed in and marketed by CyberUniTech, Inc., a newly
formed subsidiary of Pacific Diagnostic Technologies, Inc. The Company
is in advanced discussions with a San Francisco based company to locate
its university employment service on the CyberUniTech mall.
Arrangements are also being explored regarding co-marketing
agreements whereby CyberUniTech's services may be sold by this
employment service. Revenues for 1997 are estimated in the $4-5
million range.
Pacific Diagnostic Technologies, Inc. provide the investor with a vehicle
to participate in two of the hottest areas in the investment field, the
Internet ad the "stat test" market. We have seen that Wall Street is
giving HUGE price to earnings ratios for the stat test companies and the
Internet companies always carry a large P/E ratio. With the fact that the
Company will be profiatable, when so many of the companies in these
two fields are years away from profitability, I look for PTDK to move up
to the $5-6 range in the short term and $8-10 over the next 12-15
months. The addition of the Internet mall provides PDTK with the assets
necessary for a listing on the NASDAQ Small Cap Market. The public
float is approximately 1 million shares which would be tiny for a stock
moving up to NASDAQ. The small float will help the stock move up in
price. I think that with a NASDAQ listing in store, institutional buying will
be on the horizon to participate in the exciting technologies that Pacific
Diagnostic Technologies, Inc. have to offer.
PACIFIC DIAGNOSTIC TECHNOLOGIES, INC.
SYMBOL: (PDTK)
Shares Outstanding: 2.7 million
Public Float: 1 million
52 Week High: $10.00
52 Week Low: 1 3/4
2248 Townsgate Road Suite 1
Westlake Village, CA 90017
805-371-0450
Michael Leum, President & CEO
Look at the current quote on PDTK. Mark was really pushing
it at $2.25 and then days later is was $1.00.
For fun, everyone email him and see what he currently has
to say about PDTK. |
