To all/anyone:
I have read the last 100 posts or so of this thread and am still a little unclear on MDIX's current "storyline." I've taken the liberty of writing up what I perceive the current situation of MIDX to be, but I would appreciate a reality-check from some of you who are more knowledgeable about MDIX. Based on the paragraphs I've written below, do you think I have a good understanding of where MDIX is at? Thanks in advance.
--Chris O'Keefe
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The MDIX storyline (as seen by me):
"MDIX recently sold the staffing portion of its business in order to put its complete focus on Cymedix, an intenet-based medical information research tool. MDIX does not currently have any contracts involving Cymedix, however, the product is viewed so positively by the market, that MDIX officers are contemplating taking steps that would make an unsolicited takeover impossible. If MDIX wins one or two Cymedix contracts, the share price of MDIX should explode.
"On the other hand, time may be running out for MDIX. If Cymedix contracts do not occur soon, the company will face a possible NASDAQ delisting because the stock price is too low. MDIX would face the unfortunate choice of delisting (reducing exposure to new investors, and probably lowering the share price even more) or having to do a reserve split (which is scorned by experienced investors because history indicates that reverse splits are often followed by a drop in share price).
"One other option is for the company to buy back a large amount of shares which will increase share price and stave off delisting. However, it may not be possible to do this because money from selling the staffing portion of MDIX won't materialize until Fall of this year and the NASDAQ hearing is this June. Still, even if the money were available now, spending it on a stock buyback would take cash away from getting the Cymedix venture to pan out, thus jeopardizing the company's future.
"In a nutshell, one should invest in MDIX if he/she thinks that Cymedix contracts will arrive in the next few months, in time to save a company hampered by a short-term cashflow problem and a delisting concern. If contracts arrive in time MDIX will survive and be extremely profitable. If contracts do not arrive in time, MDIX may have to delist and try to make it as a private corporation (or, worse case scenario, give up the ship and sell-off remaining assets, i.e., Cymedix)."
Well, what do you think? Are my facts right? Are my opinions somewhat reasonable? Feedback welcome. |
