Eric:
Regarding your comparison of Quidel/Triby, you state that Quidel has VERY high sales and marketing expenses and high admin expenses.
However, Total Operating Expenses (which includes Selling Expense,G&A expense,and R&D expenses) have run 44%-1992,48%-1993,57%-1994,61%-1995,52%-1996 when compared to Sales.
How would Triby's numbers compare to the above?
You also cite a example of how high Quidel's top five executives pay and bonuses are, 850,000 vs Triby's 1.5 million annual admin expenses, firstly, if we compare Quidel's market capitalization of 101mil. vs. Triby's (is it 8 mil), it would seem logical that Quidel's G&A should be about 12 times that of Triby's. After all, top executives of IBM would certainly be expected to earn more than that of say Packard Bell.
Secondly, Quidel's G&A Expense as a % of Sales has ran 0%( I take that to mean that it was NM) in 1992,11%-1993,11%1994,11%1995,10%-1996,and is forecast to be 8% or below for 1997 to 2001. How would Triby's G&A compare to the above ?
Also, you state that is not much prestige whether a Dr. recommends Quidel or Triby's Hep.B or H.Pylori test, (Does Triby even have such a test?Much less the distinction of being the only one with a CLIA Waiver.), I don't think the issue is prestige, rather that a Dr. or their lab purchasing agents, would purchase a product from a company with which they are familiar with their name and reputation. Also, I believe it is broadly accepted that a product and particularly, company with name recognition can command a premium over products or companies which are deficient or lacking in these characteristics.
In brief, I think that comparing Quidel to Triby is like comparing Apples & Oranges, and where the comparisons are valid, I think that Quidel would be the one viewed most favorably.
The only thing that continue to bewilder me is Quidel's stock price compare to Triby's, but I attribute that to speculation more than anything else.
Don't get me wrong, I'm not trying to diminish Triby, and you're more than welcome to join us on the Quidel thread. |
