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Microcap & Penny Stocks : FONR...Patent on Cancer Detection....

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To: Luce Wildebeest who wrote (70)10/8/1996 2:02:00 AM
From: Rob Wachowsky   of 560
 
Calvin: Not at all! A bit of cynicism is healthy! In the long term, I think this company could go either way. If they try things on their own without a merger of some kind, their management and manufacturing abilities are unproven and untested and with the kind of volume that current management expects for '97 (100M in sales), this could easily bog the company down in backorders as has happenned in the past. There is no doubt that the patents they have attained are impressive and whether this will translate into big advantages in sales over the rest of the field will depend upon the marketing and sales forces, again unproven.

I think they are a much better bet in the short term, however. I do believe they will prevail in the GE trial and that the stock should take a good jump, but I question whether it will see as high as 5 to 6 from that alone. If they start getting more and more machines up and running, the word gets out and sales begin to pick up, watch out! My hope is that if they win trial, they get a merger offer shortly afterwards from a company more experienced in manufacturing heavy equipment. Everyone wins in that scenario.

So I am more inclined to lean towards getting out before the end of the year, unless I get other news that would change my mind before then. There is just so much risk playing this one long term due to unproven track record and suspect management. Maybe we'll see enough results in the next few months to give us hope in their long term outlook. I've been in pretty deep for over a year now and wouldn't mind hanging on another year if it looks like they have double digit potential.
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