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Microcap & Penny Stocks : FONR...Patent on Cancer Detection....

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To: mentz who wrote (437)4/6/1997 1:57:00 AM
From: luis a. garcia   of 560
 
Well Mentz that's just it, It may be the reason these medical device stocks are depressed.. What is the markup of a machine and even mainframe computers sell for 20 million or just ok doesn't matter they did and probably still do in some cases.. well as competition heated up the margins came in and if you were to look at stock like UNISYS.. it would trade for 6 or 7 bucks at infinitum.. and its margin was 6% or 7%. Sounds familiar right.. well they wanted to go away from manufacturing because the difficulty of recovering development costs..
Actually their money came from services and maintenance contracts.. software applications and upgrades their steady money that is..
A straight sale contract just does not help a company. A company needs to go into the business in order to generate revenue.. Then the machines can be depreciated linearly in time but if you got say a percentage of the work then you would make more and more money the more machines you sold. See my point. To have them do more and more for less and less requires you participate in the take or the earnings never drop down to the bottom line. Between the R&D and the margin whatever that is... the shareholder is are dead.. see my point. Somebody told me that is how Xerox operated for a while maybe still does... I know every where I go the machines are leased..
Anyway that could be one reason.. I know I worked the numbers twice first time for FONR and figured it needed sales in the 100+ range to get some nice action in the bottom line then this week I did them for MAMO again and pretty much the same thing comes up at me..(MAMO's case is more modest number but..) outright machine sales do not contribute as much as leasing or subleting etc. Anybody selling the machines for cheap is only hurting the shareholders.. This is just what's on my mind this week, actually after doing ANMR/MAMO's numbers on news of sales of a handfull of machines, but I did wish to revisit this thread on account of my previous assesment kind of left me wondering and other people were wondering also.. So I am posing the question on sales structures on FONR as well. Still trying to understand the fundamentals..

luis
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