STOCKS FOR TOMORROW *****SUMMARY of PDTK
This an article written by Mark Shultz at stocks4tomorrow.com
(Pay attention to the Internet Mall that they are scheduled to release. Since this write-up, PDTK was severely SHORTED. Decide for yourself if this is a SCREAMING BUY at the current .53)
Pacific Diagnostic Technologies, Inc. (PDTK) is involved in one of the fastest growing segments of the medical industry, which is the development, licensing and marketing of proprietary products which provide physicians with immediate diagnostic results at the point of patient care. Such tests are called "stat" tests. "Stat" is the hospital jargon for immediate. The Company's Stat K analyzer is an inexpensive, FDA approved patient-site potassium test, providing results in two minutes. This is in contrast to hospital and other
in-laboratory tests that require equipment that is stationary, considerably more expensive, and often takes from 45 minutes to as much as several hours to provide results.
Potassium is second only to glucose as the most frequently requested stat test. Like glucose test kits, the Stat K is fast, accurate, inexpensive, portable, reliable and easy to use. The Company views the Stat K system, which has no competition in terms of cost or mobility, as the logical first step toward a family of stat
tests. In addition to potassium, test sensors will be available to analyze for sodium, lithium, sodium/potassium/chloride, lead, acetate and magnesium with only minor programming changes.
Investor interest in and expectations for this industry can be best described by the market valuations Wall Street has given stocks in this industry. I-Stat Corp. (NASDAQ:STAT) develops, manufactures and markets proprietary blood analysis products that provide physicians with immediate resuts. I-Stat has a market
capitalization of $220 million with sales of $20 million and has never had any earnings. Diametrics Med, Inc. (NASDAQ:DMED) which has developed a proprietary blood chemistry testing system has a market
capitalization of $75 million with sales of $2 milliom and no earnings. It is obvious that Wall Street has a very high level of expectations for this industry. Pacific Diagnostic Technologies, Inc. Has a market capitalization of less than $10 million with projected sales in excess of $7 million and with $1 million in projected earnings which is about $.30 per share. In addition to marketing products to physicians, hospitals and other conventional medical facilities, the Company is giving serious consideration to acquiring or licensing products to penetrate the burgeoning alternative medical market, which encompasses chiropractors, holistic doctors, natauropaths, acupuncturists, nutritionists, providers of vitamins and supplements, health clubs, fitness centers and sports medicine clinics.
As a move into one of the hottest fields in the marketplace, the Company announced in Mid-August that they have acquired an Internet virtual mall designed as an international marketplace for universities to advertise, sell and license their technologies, patents, copyrights and other intellectual properties. The new
mall will make it possible, for the first time, for companies, individuals and universities themselves to search the world efficiently, effectively and economically for new or little-known technologies to acquire, license or commercialize into viable businesses.
This is a very exciting opportunity to combine the Company's technological skills with the newest, cutting edge marketing technology to create a highly significant profit center. The opportunities for companies seeking new technologies is apparent. This marketplace will also provide entrepreneurs seeking to develop
new businesses by acquiring or licensing technologies or software developed by others. Universities will also benefit because the mall, in effect, will be a catalog of the many thousands of intellectual properties developed by universities throughout the world. The catalog will be available to everyone. This will be the only such
service available. The technology that drives the virtual mall will make it possible to request specific technologies and to enter a multitude of parameters, such as prices and applications, and to have only the information requested presented, despite the fact the information may have been obtained from several
universities.
Ultimately the mall will serve as a "clearing house" for a variety of university functions and activities, including student applications, employment searches and student and faculty exchange programs. The mall should be up and running early in the fourth quarter of 1996 with approximately 40 universities on board. The
mall will be housed in and marketed by CyberUniTech, Inc., a newly formed subsidiary of Pacific Diagnostic Technologies, Inc. The Company is in advanced discussions with a San Francisco based company to locate its university employment service on the CyberUniTech mall. Arrangements are also being explored regarding co-marketing agreements whereby CyberUniTech's services may be sold by this employment service. Revenues for 1997 are estimated in the $4-5 million range.
Pacific Diagnostic Technologies, Inc. provide the investor with a vehicle to participate in two of the hottest areas in the investment field, the Internet ad the "stat test" market. We have seen that Wall Street is giving HUGE price to earnings ratios for the stat test companies and the Internet companies always carry a large P/E ratio. With the fact that the Company will be profiatable, when so many of the companies in these two fields are years away from profitability, I look for PTDK to move up to the $5-6 range in the short term and $8-10 over the next 12-15 months. The addition of the Internet mall provides PDTK with the assets necessary for a listing on the NASDAQ Small Cap Market. The public float is approximately 1 million shares which would be tiny for a stock moving up to NASDAQ. The small float will help the stock move up in price. I think that with a NASDAQ listing in store, institutional buying will be on the horizon to participate in the exciting technologies that Pacific Diagnostic Technologies, Inc. have to offer.
PACIFIC DIAGNOSTIC TECHNOLOGIES, INC.
SYMBOL: (PDTK)
Shares Outstanding: 2.7 million
Public Float: 1 million
52 Week High: $10.00
52 Week Low: 1 3/4
2248 Townsgate Road Suite 1
Westlake Village, CA 90017
805-371-0450
Michael Leum, President & CEO |
