Xillix Technologies (XLX--TSE)
Staff and wires Saturday, July 24, 1999
37 cents, off 16 cents
Investors were bailing out after the money-losing
Richmond, B.C.-based medical imaging company
announced that its survival is in jeopardy because
of a patent dispute with its Japanese partner.
Analyst Mike Jams at Lévesque Beaubien
Geoffrion didn't like the sound of it and did an
about face, downgrading the stock to "sell" from
"strong buy."
[oops .. tried to post the url but it's too long and won't wrap ... just use the search at the globeandmail.com][or .ca maybe]
Yes, stable Friday - quote.yahoo.com ... but i wouldn't bet the ranch on xlx holding this level through next week, either ... i missed on .26s [by a penny!] but will have stink bids in for prices below that even next week .... only playing this one with petty cash, but it's a compelling story. I do believe Xillix's side of the dispute - clearly the deal with Olympus wasn't working out in their favour, despite the quality of their technology - we already knew that - we just didn't know exactly why. The fact that a BC court will make the decision is significant imho, xlx stands a far better chance of getting a fair shake at home ... and the possibility of a settlement does provide a chance of reward on the upside, not that a person would want to hold his breath on that ... anyway, in the meantime, xlx is free to set up a marketing plan that works, and perhaps to get an injunction against O flogging its copied product in the North American marketplace. We should hear rhetorical posturing out of O's lawyers next week, eh.
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