I don't really understand why there is such a disconnect between the events at ABMI and its share price.
ITI was willing to lay out a million bucks cash just for the rights to market the Omnifilter, and it isn't even prototyped or approved yet. Obviously, someone there sees something. ITI has some cash, but they are not rich enough to be throwing around a million dollars without a very good reason.
So if ITI is willing to do that, how can the stock still be trading at a market cap of only 5 million or so? Is ITI seeing something that investors don't see yet, but will soon? Or is ITI just a bunch of incompetents who are throwing a million bucks away, and every investor but me knows that?
It seems to me, if ITI is willing to take that risk, there MUST be some investors out there who would similarly jump in and take a chance on the stock, IF THEY ONLY KNEW ABOUT IT. Maybe that's a problem with dealing with a privately held company. If the news release had said "ABMI signs deal with Medtronic", I have to believe there would have been some stronger market reaction.
Of course, as I recall, Rash didn't even MENTION the million bucks in the press release. Why would he omit such a critical fact? I have to believe that there will be another press release when the payments are both received (I can't remember when that's supposed to be, but it's pretty soon, according to the 10Q).
Does anyone know anything about the link between Medtronic and ITI? Is there in fact ANY link at all? If so, could it be that Medtronic may be planning to just buy the Omnifilter completely, IF it is successfully approved? |
