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Biotech / Medical : Novametrix Medical Systems, Inc.

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To: Roland Batson who wrote (183)7/2/1999 11:00:00 AM
From: Elvis Jones   of 207
 
Quick random thoughts...

NMTX needs to show better earnings. They have disappointed 'the street' enough that Zacks shows no analysts covering the company. Stabilizing earnings helps, but momentum must come.

This means NMTX is a 'forgotten' company, which can only benefit by showing results.

NMTX needs to lower the ratio of SG&A to Sales. I believe this is where your concerns hit the bottom line.

The purchase of ChMV will add 27% to revenues (comparing 9mil projected for ChMV to NMTX's FY99 of 33mil). Can the company find some economies-of-scale in this to reduce SG&A? It can only help.

Good Luck!

Happily Following NMTX,
Duke
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