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Biotech / Medical : ACMI - Accumed Inc.

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To: Bob Morris who wrote (439)11/3/1997 1:17:00 PM
From: Frank Buck  Read Replies (2) of 1894
 
Bob,

Thanks and your welcome. I am sure you'll agree, "there are strength in numbers".

Why shouldn't we express our "aggregate" concerns and exert our combined influence to the Company to better inform shareholders and perspective investors. The days of passive shareholders are over. The dissemination of information can occur as expediently or as slowly as desired. Look at any momentum story stocks.

I don't believe a company's "website" can ever reach as large a number of potential shareholders as can a steady stream of Company Press Releases. The old adage' "out of sight- out of mind" rings with familiarity when there are no news-releases.

Obviously, we (equity owners) are interested in attracting new shareholders and increasing the market capitalization of any company we own shares in. The fact remains that if a company does not have sufficient continuous revenues/earnings to maintain operations they will eventually have to borrow (credit) or sell additional shares (equity ownership) that will dilute existing shares.

I for one can not imagine that the Board of Directors would even consider selling new shares at these levels. And obviously their
recent announcement of a new $8.5 M credit line provides an indication that large scale dilution is not being considered.

However the fact remains that selling additional shares at some point in the future is a harsh reality. Obviously it would be our mutual advantage to have the stock price at a level more in line with the competitors than where it is currently at. The dissemination of truthful (non-hyped) information can lead perspective buyers to become attracted to the stock and reduce the levels of shares in short-term traders accounts.

We can argue the point that some Company's would rather see a larger portion of shares being held by "Institutions" rather than personal accounts. At the present share price I don't see that we are in the price range of most Institutional buyers. So as a result we are left
attracting the private investor. I believe that many private investors are more knowledgeable than given credit for. The advent of on-line brokerage accounts has many market watchers and the Federal Reserve Board scratching their heads in amazement.

However...because these investors are making their own investment decisions, they rely on information from the company to keep them "committed" to the company.

If anyone else agrees with the above scenario please let Bob and I know.

Frank
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