Why MXR:
I actually see a similarity to Rambus early days (Nasdaq: RMBS)
* Rambus had Intel, then AMD, Medix got Wellpoint and Advanced
* Rambus has a patented solution that could be the standard, Medix has the UI which could be a standard interface for Companies targeting the iHealth sector (Compaq, Intel, IBM, Palm.net, AT&T, DELL + other sector players offering solutions including WEBMD)
* Rambus had strong incentives in form of equity for customers, Medix has the same in place for Wellpoint
* Rambus had a strong BOD and Management team, so does Medix
* Rambus had H&Q, Medix has UBS Warburg
* Rambus' business model is one of royalty revenue based on customer output in addition to licensing fees. Medix has a per click revenue model and potential licensing fees from OEM and other sectors. Both models are almost pure margin
Medix is a huge underdog today, but IMHO one with the better mousetrap. This should become clearer to the world leading up to and during the summit. Of course the risk is there (albeit lower than same time last year IMHO), otherwise the stock would already be $ 20.00.
I think the next 60-90 days will prove the possibilities.
reh |
