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Biotech / Medical : BSD Medical (Long Term Investment Oriented)
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From: fwhco10/2/2012 12:51:41 PM
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With the new tax on medical machines set to kick in soon because of Obama-Care, I like the FPU program even more.



My main reason is that there is no way to collect the Obama-Care tax. The tax is like a franchise fee as a percent of sales. The tax is diabolical, the more you increase the selling price, the more tax you pay.



With FPU, BSD M. could build an installed base of MicroThermX’s and reap significantly more profit. This will take more time and additional capital to build the base, but it will benefit both BSD M. and the distributors.



In fact, I now expect hospitals to rent and use FPU for other medical machines even though the machines may be installed at the hospitals. This might be an end-run around the tax, and the hospitals can bill the use as a direct cost.
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