My research indicates there is no competing tech on the horizon.
I agree with this part of your post.
Efforts are being made to get HMO's to pay for these scans, as soon as the first HMO decides a 400 dollar scan is cheaper than a 50,000 bypass, I think this company will fly.
You're right that HMO's just care about money. However, consider:
1) How many people die of their first heart attack and so don't need that $50,000 bypass where if the $400 scan shows problems would instead get stents or other treatment costing the HMO money?
2) How many of the $400 scans would be "wasted" because there was nothing to see?
3) Most importantly, why should an HMO care about the bypass when the person who gets it is probably already off of private insurance and is now on Medicare (or is that Medicaid?) so the government foots the bill?
Personally I think it'll take the proverbial (and probably literal) Act of Congress to get them to pay for it.
I have tried very hard to find a reason for the current slide, but I have not been successful.
How much money does the company lose? Are revenues and earnings increasing or declining? Are they cash flow positive or negative? How much cash do they have on hand? What's their burn rate if they're cash flow negative? When will they need additional financing and what form do they anticipate it will be (private offerings, secondary offering, regular debt, bank line of credit, floorless convertables)? What's their institutional backing (mutual funds, insurance companies, etc)? Have their institutional holders been buying or selling?
A quick glance at an IMAT chart on Yahoo shows me that the current decline started at just about the same time that they announced they were selling their HeartScan unit. Maybe this is perceived as a desperate move?
The 10-Q (filed Aug 14) has the following troubling statement:
The Company's liquidity is affected by many factors, some based on the normal ongoing operations of the business and others related to the uncertainties of the industry and global economies. Although the cash requirements will fluctuate based on timing and extent of these factors, management believes that cash, and cash equivalents existing at June 30, 1998 together with the proceeds from impending sale of HeartScan , and the estimated proceeds from ongoing sales of products and services in 1998 will provide the Company with sufficient cash for operating activities and capital requirements through December 31, 1998.
Currently, the Company does not have significant capital commitments in 1998.
To satisfy the Company's capital and operating requirements beyond 1998, profitable operations, additional public or private financing or the incurrence of debt may be required. If future public or private financing is required by the Company, holders of the Company's securities may experience dilution. There can be no assurance that equity or debt sources, if required, will be available or, if available, will be on terms favorable to the Company or its shareholders. The Company does not believe that inflation has had a material effect on its revenues or results of operations. |
