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Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Cisco who wrote (552)	11/18/1997 12:15:00 PM
From: Frank Buck	Respond to of 1894

I certainly agree with the case that Cisco makes. The street and retail investors in particular are not as adept in the salient points of medical-device stocks (or any other stocks) as those who do their due diligence. In this age of momentum investing, I would say that most retail investors don't care what the company does as long as the stock appreciates after they buy it. The typical herd mentality. Who hasn't done it? The efficient market theory is just that, a theory. It was stated in about every Business text-book that I ever had. The fact remains that the availability of information today is overwhelming to most and too much work to others. Yes the information is out there to all. All that information and $3 will get you a cup of Starbuck's coffee. Do you think the majority of the investment community know the difference between the PAP smear/manufacturers equipment? I would say not. Most are probably not aware that primary screening equipment is any different from the AcCell System which is an "enhancing device" to assist the cytotechnologist in their work. As such I would say most only hear the "news"...that a company called AccuMed has a process that...deals in the automation of the PAP smear, period. The trickle down effect of the fine points of one system (as compared to another) will take affect when a company is able to translate those differences into revenues and increased net-operating-income. This is the blood that attracts the sharks of the investment community. The nuances, no matter how obvious to the information gathering investor are overlooked by the casual buyer until proven in sales or the belief that sales/N.O.I. will improve. All of this obviously takes time. Hopefully the street awakens and the differences will be "perceived" by some to be substantial and significant. Hopefully it will be perceived to threaten the sales of competing systems. Hopefully it will incite buyers to want to own a piece of this new evolving technology and raise the price of the stock. In the meanwhile existing shareholders lose interest and sell shares to go to greener pastures. Management/officers sell off shares (they have their own financial agendas too).The market in general changes course, etc. This all makes for a rocky road and usually takes longer than our intended timeline. But...the reverse side of the coin is that those that have gotten in early, before the herd will "sometimes" be amply risk-rewarded. No matter how great a new technology sounds it has to translate into some new buyers wanting to pay more for a stock than where it is currently at. Frank