I'm hearing a lot of optimistic speculation based on the week's activities, however, I think that everyone has overlooked the short/long term significance of a piece of information that came out earlier this week, of which I'll reprint here for everyone's convenience:
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 11, 1998-- Pyng Technologies Co(VSE:PYT. - news) Pyng Technologies Corp. is pleased to announce that subsidiary, Pyng Medical Corp. has received confirmation from the US Military Medical Standards Branch that the required documentation has been prepared to issue a National Stocking Number for the F.A.S.T.1 System for Intraosseous Infusion. The NSN is expected within the next 2-3 weeks. This is a requirement for military purchase of any product.
Pyng Medical continues to progress to deliver the F.A.S.T.1 System to both Military and Civilian markets.
My background - I'm an engineering technology manager currently employed with a multi-billion dollar telecom equipment manufacturer and have previously worked in the aerospace industry dealing directly with both the Canadian and US military. Whenever we in the telecom industry wish to use a vendor's part, we have an internal body qualify it (we pay a number of highly qualified engineers a lot of money to do this, up to US$50K per device). This is only done if the part WILL BE PURCHASED IN VOLUME IMMEDIATELY and has already been externally qualified by the particular vendor in question (ie. meets specific UL/CSA requirements, equivalent to the FAST1 meeting FDA approval). Therefore, if the US military has prepared paperwork for an NSN number, it is not because they have nothing better to do nor nothing better to spend US taxpayers' money on (as the entire process is time-consuming and costly for them). From my direct military experience, it is a definite indication that purchasing has already approved, based on their own stringent due diligence (the military is not one to depend on civilian field trials), that THE US MILITARY WILL BE ORDERING IN QUANTITY THE FAST1 system in the near term. So, the question is not if the US military will be purchasing the FAST1 but, rather, how soon and how many thousands of units.
For those interested in such speculation, my experience with the US military (given that a Gulf crisis is impending and that we are early in the current fiscal year, when money is abundant for such expenditures) is that an order of a sizeable amount can be expected shortly after the NSN number is formally granted. Furthermore, if the US military has already accepted the product, then it becomes quite evident that the civilian trials currently underway are nothing more than a rubber-stamp/training exercise.
$10? - it's difficult for any stock to sustain such an increase, however, after soliciting an objective opinion from a broker at Nesbitt Burns who happens to be intimately aware of current and past PYT developments, it is not unrealistic to expect PYT to approach $5 before mid-March given the current information. But, difficult as it may be not to focus on short term gains, one must remember that this product is unlike any currently available and will provide steady growth in the months/years to come. Absolutely "a better mousetrap". |
