Joe, et. al. (and others, for those of you who are Latin-Impaired),
Here are some points I think are important right now:
1. What specifically does the teaming with Proctor & Gamble do
for QDEL?
- Obviously has a positive impact because of the exposure QDEL
products will get and also because P&G is a "prestige" company.
- It is difficult to quantify because we cannot be sure how many
of the customers P&G calls will order QDEL products.
- May eliminate or mitigate the seasonal cyclical nature of sales for
QDEL in the future.
- Broadens the company's product line.
2. What about the recent news of warrant expiration?
- gives the company five million dollars in cash, which can be used
to increase sales.
- Dilutes existing shareholder stake in company about seven
percent. This is roughly equal to a fall in company stock from $5.25 to
$4.88. This is exactly the decline we have seen the past week. So, I'm
assuming it is already written into the price and is no longer a negative.
3. What will be the amount and pattern for future earnings?
- I previously suggested the next three quarters would be as follows:
.06, .08, .10, .12 cents a share. This would suggest the following stock
valuations: end of 1997 Stock=$11.40 at P/E=30
$15.20 P/E=40
- I think someone should call the company and find out what THEY
can tell us about the future projections (don't laugh, many times
companies have told me I'm the only one who ever asked them and
gave me the information).
4. My belief is that it will take one more solid quarter to attract attention.
Also, be aware that mutual funds don't usually look at companies priced
under $12. Individual investors, like us, will have to push the price up
to that level. The only way to do that is to TELL others about the company
and their bright prospects. I posted two items in the newsgroup
"misc.invest.stocks" last week, and I urge all of you who feel the stock
is a great investment to do the same. |
