Rock.... great questions. I'll take a crack at them....
Q1) What is the likelihood of institutional money coming into MDIX even if all of the above mentioned requirements were to be fulfilled? Mike, based on your conversations with your broker friend, what is it going to take to get some "safer hands" into this stock?
A1) The company has already announced that it is going to bring on the services of an investment banker. One of the major services offered by good IBs are institutional introductions. In my opinion you will probably see a push to pick up a micro-cap fund or two as well as several high-tech hedge funds.
Q2) What are the chances of MDIX being able to implement a buyback; in other words, is it viable financially for MDIX to allocate 1-2 mil $ to buy back shares?
A2) If the latest words coming from Banyan (the buyer) are true, and the company will receive substantial funding from this sale in the current reporting period, IMHO there will probably be a stock buyback rather than a reverse split. However, if the stock keeps being pummeled, even in the face of good news (ADRX suit, etc.) it makes no sense to buy back stock. IMO all they will do is buy back a bunch of stock between $.375 and $.75. I'm not in this stock for a couple of pennies although it is apparent a lot of other shareholders are, if for no other reason than to dump. Given the way shareholders feel about this company, it might be smarter for the company to put its cash to other uses.
Q3) What is the status of the ADRX lawsuit and when is some sort of update expected from the company?
A3) All leaks about the suit from people who had been interviewed by MDIX have stopped. I used to get at least one EMail or tidbit a day. Even the ADRX Boards are quiet. I would think the suit is imminent.
Q4) With MDIX patents pending and competition fierce, especially for a company that has to spend to much time with "survival issues", what are the chances of similar products being brought onto the market short term?
A4) I see no new competitive products on the market, or in early announcement stages. Rather, there is a current on-going feeding frenzy over the business PCNIE has lost because of its problems. I do know, because I represent one, that several large companies, inside the medical field and outside of it, are trying to enter the market. I give it at least a year before any worthy competition arrives.
Q5) "It seems that if major industry players are as interested in MDIX as we are lead to believe, MDIX, with or without a poison pill, will probably be bought out." If MDIX is as undervalued as you say it is, Mike (based on the acquisitions of MDIX competitors), isn't it just a matter of time?
A5) If you follow medical software companies, even if MDIX were fairly valued, and IMO it isn't, it would still only be a matter of time before somebody got 'em.
Q6) What is a realistic timeline for MDIX to establish itself in the industry, based on its small sales force and limited resources?
A6) Any timeline you draw will be modified the moment MDIX lands its first big institutional account. The problem this company faces is that those shareholders who are vocal, and those who are just vocal, try to impose some type of formula that ties the value of a sales contract, or the settlement value of a lawsuit to the value of the share price. IMO this is not only wrong, it is destructive, and if this thought process continues, and those that are most vocal, including some in this folder, don't allow this company to mature normally, management and the Board will grow weary of trying to please people who don't understand and don't care, and put the company in play. |
