I think I may be talking to myself here, but here's what I posted on RB.
I just listened to the conference call on Dialpad.com. There was a little distortion at the part where one of the callers asked about the DiagnosTec subsidiary. Did he say that 60% of the revenues from that subsidiary would come back to us. I'm not clear on how or how much the LAJD shareholders benefit from the subsidiary. He also mentioned that they hadn't decided whether or not to spin if off or
leave it as it is.
The whole thing sounded very good. One of the guys did say that while he may get in trouble with their legal counsel, he felt that the present market cap of 6m is a joke. He cited Dr.Koop.com as having spent $60 million dollars for a $6 million dollar revenue in the last 9 months. They truly believe that their web portal will become unique and one of the hottest online health sites out there.
I am also very interested in the Migraspray product. They stated that the product was 90% effective on migraine headaches and works within five or six minutes. If this is actually true, they won't be able to crank it out fast enough.
They had Meridian there and they will be marketing the products around the world. The TB test, they said, is unique, fast, cheap, and more accurate than anything else available, including the smear tests. They plan to push the products off the internet and into the bricks and mortar sales areas. He stated that they have other products that they haven't mentioned yet, and he also mentioned another subsidiary that no one knows about yet but I can't remember the name of it. I think it was an allegy spray of some kind.
One of the guys projected a 2 billion dollar market cap within 5 years. They stated that if all they had was the TB test, the company would be very successful. They think this thing is going to take off like a rocket.
They are also working with other marketers in addition to Meridian. Meridian has reps in over 60 countries right now that are ready to take the products world wide.
All in all, they sounded like they knew what they were talking about to me. I see no reason for the stock to be priced where it is right now, but certainly in the future, if they pull off their business plan this stock will go straight up. I don't think we are looking very far into the future either. From what I gathered, they plan to have the products in the market place worldwide withing a couple of months.
One of the callers asked about their cash position and how they planned to finance the worldwide marketing of the products. He said that they had some 5 year warrants execiseable between .60 and 1.00 that had already been converted and that they felt there would be an additional $250,000 or so coming in soon. The warrants expire in
three weeks so if this is the dilution they referred to in one of the earlier releases, I don't think we have a lot to worry about there as some of the damage has already been done. In addition, they feel that they revenues from the products will ramp up quickly and with the high margin they make on that, they will be able to finance the marketing.
They are very high on their web portal. They said the margin on the products is around 80%. Of course, their job is to sound positive and enthusiastic, but I didn't spot any real holes in the plan. This looks like a go to me. I'm hanging in for the long haul.
shotgun |
