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Biotech / Medical : ACMI - Accumed Inc.

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To: Sigmund who wrote (1214)1/19/1998 2:11:00 PM
From: Frank Buck  Read Replies (1) of 1894
 
Sigmund,

The more elaborate detailing and further clarification of the newly announced venture will most likely be at the center-stage of the talks tomorrow.

A benign evaluation of the venture, or even a great endearment to it by the analysts' may not have an immediate impact on ACMI shareprice. A reiteration of a "strong-buy" by current analysts without a commensurate increase in their own institutional account holdings will be like yelling "come", for a second time, to a deaf dog. I say this because their original strong-buys had never been publicly removed, yet they were systematically reducing their own exposure for the past several months.

I do believe that your statement; .....they (AccuMed) probably wouldn't do it if they thought it would be disadvantageous to shareholders. is correct. My feel is that the analyst will also consider the "equity-carving" to be a determining factor in an earlier than expected break-even.

However I am unsure if the resultant renewal of jubuliant outcries will have an immediate positive impact on the shareprice. I still believe that given the past faux pas of the analysts' and the Company (regarding EPS dissapointments) that a firm strong quarter or two will be the motivating stimulus in the stock movement. Or as previously mentioned, an actual physical event such as a "nominal"
token buy-back or an immediate large-scale order for cytopathology equipment. As previously mentioned a considerable re-purchase of ACMI stock by the analyst/market makers will also work.

Frank

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