The VASO SEC quarterly report was filed on Monday, January 14, 1997.
The important points of the this quarterly report:
. Revenue for last quarter $ 96,000 only (!) as compared to ($) 1,270,378 the quarter before,... all from rental of units and NOT from sales of units during this last quarter.
. SEC investigation ongoing... nothing new there.
. Lawsuit: VASO says that the lawsuit is frivolous and without merit (that is new)
This proves that the ongoing study is becoming more and more important because VASO is not selling nor renting enough units at this stage of the game. We knew that this quarter was not going to be good... VASO remains a growth company with, at this time, a marked drop in revenues.
Here are a few possibilities to explain the lack of massive drop of VASO share price: (a) not too many found the SEC report yet, (b) results were expected and most are sitting tight, (c) slow leaks that the study is in fact positive, thereby counteracting this bad quarterly result??? I wish we knew!... VASO remains a growth stock with great potential AND risks as well!
A note was posted on AOL Motley Fool, criticizing VASO management. I cannot support that assessement. Remember that when VASO got going with their salesforce, their quarter showed over $ 3,000,000 in revenue(!)... the main problem is that the study dragged on and on and on... That is the crux of the ongoing problem... Mismanagement? I don't think so. To snuff the potential competition you have to have a large salesforce on hand. Mismanagement by the research center? Possibly... but I don't think so,... the screening for the right patient is so critical,... so you can't blame researchers for being "too" cautious and thereby slow (I heard that only 1 out 10 screened patient is eligible for the study).
In the Spring, Vasomedical had a nice cake, and the multicenter study was going to add icing on it.... Now the cake is getting stale, and the icing is becoming much more important!
Will VASO stock price drop tommorrow? Yes.... if all the above are "unexpected news" to some,... The VASO shares would drop in price because I don't see anybody wanting to buy any shares, right now, after this SEC report and while some might sell. Again, they might be leaks of a positive result from the multicenter trial and that would prevent a big drop. The next days will be interesting.
Gaston |
