Swissray International Makes Competitors Leap By Sharon Krantz, online analyst As the new
Millennium dawns, radiology-related facilities, hospital departments and health systems are realizing
higher productivity and better patient care comes with a digitally-based imaging environment. Now,
a little known company called Swissray International, Inc. (otcbb: SRMI) has established a
considerable market lead (by as much as 3 years) in the digital medical imaging arena. Surpassing
such industry giants as GE Medical Systems, Hologic's Direct Radiography Corp, Toshiba, Siemans,
Phillips, and Cannon to name but a few. Even Swissray's exclusive distributor, Hitachi Medical
Systems has not scratched the surface. Swissray's confidence has been bolstered by sales of their
direct digital Radiography (ddR) systems, since it received FDA clearance in 1997 for the world's
first ddR detector. To date, the Company has sold well over 50 units. The gap widened to a huge
crevice when the company announced two new products during the RSNA conference in Chicago
last week. So, why should investors care about this tiny bulletin board stock ? One reason --
Merger. In July, the company hired investment banking firm Raymond James & Associates of St.
Petersburg, FL, in an effort to support its plan for growth, and M&A opportunities. Whisper is their
talks moved closer to the ultimate deal during the Chicago conference. The strength in the stocks
recent volume and price over the past month would support this conclusion. Aside from the rumor
mill ? In the LONG run, Swissray could prove to be a great value play. With the ramp up in their
sales, the industry's acceptance, and a NASQAQ listing the company could reach the level of
where it should be trading now-- $40. Today's Fundamentals: The stock shows an intraday high of
6.687 and a low of 6.125. SRMI closed at 6.625 with a volume of 348,000 shares traded. 105% of
the stock's thirty-day average volume has been traded in the most recent session. SRMI is in a
strong uptrend with a significant positive divergence from the 200-day moving average line. The
moving average describes the price trend of a stock over specific period 200 days in this case.
When a stock's price is significantly above this line, it has recently posted strong gains and may soon
consolidate, or pull back, before resuming its uptrend. With a significant positive divergence from
the 50-day moving average line, SRMI is posting strong positive gains. SRMI is currently
performing above its 10-day moving average line, indicating short-term momentum. A positive
divergence from this point of reference indicates an uptrend. SRMI is proving itself in an uptrend
ranking in the top half of all stocks with regard to long-term technical rankings. In fact, the stock
scores a positive divergence from the 200 and 50-day moving average lines and has posted a
notable gain in the most recent twelve and twenty-six week periods. |
