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Biotech / Medical : ABAX --- lots of upside -- Ignore unavailable to you. Want to Upgrade?

To: burner who wrote (354)	10/24/1997 10:00:00 PM
From: Yo Yo	Respond to of 492

I hate to disrupt the discussion with fundamental analysis, but I will anyway. And anyone who has followed stocks for the last week can attest to the fact that fundamentals don't mean JACK in the short run. They DO however mean EVERYTHING in the long run. Their analyzer sales growth is trending downward, only about 15% increase per quarter. They really need to get more units in the field if they are going to establish the recurring disk sales revenue stream. Disk sales growth is trending downward too. If you go through the financials and do some projections for the next year or two you'll see that these guys have to cut the cost of producing their product or they'll never make any money. Their gross margins are horrible and not getting better very fast. At least their overhead costs are staying relatively flat. They won't run out of money soon, but the prospects for making money any time soon are not great either. If my projections are close, it's going to be at least another 6 quarters before they break even. They appear to be working on a new automated disk production line. This should cut cost of disk production. Does anyone know when it will be on line? They have to get some additional human tests approved to make the Picalos more marketable. Then they'll sell some units. Lastly, am I mistaken, or did management hint that sales for the upcoming quarter might not see the same growth rate as they recently have? Two major orders have been completed, with no recent large order anouncements. I like the concept, but am waiting until ABAX shows there is some hope that they will one day make a profit. All that said, the stock will probably double in the next month! Then I'll Buy. Yo Yo