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Biotech / Medical : ACMI - Accumed Inc.

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To: Frank Buck who wrote (1489)3/1/1998 3:05:00 PM
From: Sigmund  Read Replies (1) of 1894
 
That analyst call may be critical. This is a very complex situation:

* Product news favorable
* Company news was unfavorable and now is yet to be determined

Certainly you are right that there are lots of opportunities for ACMIC to balance unfavorable company news with favorable product news. And there is also the possibility for favorable company news as well.

Personally I think the final outcome will be favorable. I hope they get on with it and take all of the required steps as soon as possible. If they had taken these steps earlier it would have been better and it is better to take them now then wait. As an example, I think the company needs new financing not only to satisfy NASDAQ but to provide the flexibility to properly exploit their product strength. I would prefer to see new money come into the company and have some dilution than to have the company try to squeak buy with their existing financial resources and have this situation remain unresolved for the next couple of years.

Also I think a significant reverse split would be good even if difficult to take in the short run. If they were to reverse split 10:1 the price might decline in the short run but it would become a marginable stock and that would be good. It think it is easier to go from being a $6 stock to being a $24 stock than from $3/4 to $3.

As far as the tone of the thread is concerned, I think the tone was set my management. When they make positive moves and begin to share information with the shareholders the thread will reflect this positivism. Prompt release of information reduces the risk of being an investor and in general leads I believe to a higher stock price.
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