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Biotech / Medical : SonoSight (SONO), Handheld ultrasound for the masses -- Ignore unavailable to you. Want to Upgrade?

To: Ben Wa who wrote (191)	8/18/1999 11:18:00 AM
From: Sam	Read Replies (2) \| Respond to of 365

I'm not sure why I bother replying to you, but I'll do it just this once more, after that if you want to spout hot air, please do, I'll hit next. 1. ATL was actually approached by Phillips for a buyout before the spinoff, and rejected it. Phillips went away, then came back after the spinoff was complete. This time ATL agreed. Why? I'm not entirely certain, that wasn't explained. But I suspect that ATL knew when they spun off SONO that they would be bought. Not that this changed their plans (see number 3 below). 2. ATL began research for portable ultrasound equipment back around 1994 or so. They were approached by the Navy (I'm pretty sure it was the Navy, but maybe the Marines or Army were involved as well) who wanted something to use in the field. The funding for the research came partly from ATL, partly from the military. 3. ATL always, as far as I know, expected to spin off the portable unit. As they said in the registration statement, they felt that the two companies would have different characteristics and would be best served by different managements. As a previous poster said, they didn't cut strings entirely. Nor did they "cash out" of their investment by selling either to the public or to another company. They spun it off to shareholders, so those shareholders who wanted to participate in a company with that profile could take advantage of it, and those that didn't could just sell their stock in the open market. 4. If you want to ask who is going to use it, that is certainly a legitimate question. It won't replace stationary ultrasound equipment, but there are plenty of places where mobile ultrasound would be extremely helpful. Those are SONO's markets. It is a very large opportunity, though it isn't clear to me how quickly it will develop, which is my main hesitation about putting a lot of money in the stock (I have what I consider to be a small beginning investment in it right now.). 5. As TriiBoy has said, your objections are kind of mindless, based on its run. Skeptics are more than welcome on this thread. I haven't bought as much as I might like because I have reservations about buying companies without either earnings or revenues. However, mindless skepticism is not especially welcome, and I, at least, won't respond to it again.