One more thought!
Here is some food for thought. This item was published in December 1996. Could any of this be possible now fifteen months later?
Just a little info that I received from Kostech SmallCap Research 1996.
Another attractive feature of this emerging company is the consolidation ocurring in this field. According to a medical device review "Charting New Territories in Minimally Invasive Surgery", written by Oppenheimer & Co.'s analysts John Calcagnini and Justin Vaicek (9/20/96) "the worldwide stent market will continue to consolidate as the leading cardiovascular device companies tap smaller manufacturers to secure technology and patent rights." The analysts also stated, "We suspect that smaller manufacturers will be willing to sell, given the tidy sums being offered
This puts ABMI in a unique position, being a small company in a very large industry which is prone to consolidation. ABMI holds patents on intellectual properties very similar to, if not more advanced, than those currently being acquired for hundreds of millions of dollars. The Company's President and CEO, Mr. Steven B. Rash stated, "If our patented stent technology possesses only half the value Medtronic, Inc. paid for Instent's non-patented stents, that would account for over $100-million in valuation on this core
technology alone." Instent, Inc., a tiny stent manufacturer with no FDA approvals and only $2.4-million in revenues last year, was acquired by Medtronic, Inc. for over $214-million earlier this year.
If ABMI were to be acquired, based solely on multiples recently paid for companies and/or similar technologies, it would appear conservative to give the Company a valuation of not less than $200-million which would provide for a speculative share price of around $7.50. The stock is now trading at just over $1. We anticipate further developments soon and will do updates as events occur.
COPYRIGHT (c) 1996 by Kostech SmallCap Research. ALL RIGHTS RESERVED.
ANYONE HAVE THEIR OWN THOUGHTS ON THIS?
Bill Fortune III |
