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

To: Steven Zimmer who wrote (616)	12/8/1997 12:21:00 PM
From: Frank Buck	Respond to of 1894

Steven, The following paragraph may help illustrate why we are in a period of retraction. Cumulatively it is a function of the "fact" that the: Analysts' earnings expectations have not met the Company's actual figures

To: Steven Zimmer who wrote (616)	12/8/1997 2:21:00 PM
From: Frank Buck	Respond to of 1894

Steven, The following (copied) paragraph may help illustrate why we are in a period of stock-price retraction. "In theory, a company's stock price discounts the firm's future return to shareholders in the form of earnings/dividends. Because those earnings could be diminished if things go wrong, the stock ought to reflect the danger that they might. The goal of assessing risks isn't to scare you out of the market. Rather, it's to make you cognizant enough of a company's potential troubles and the likelihood of them happening that you put a fair value on its stock price." Cumulatively, the past two quarter AccuMed "facts" are: Analysts' earnings expectations had not approached the Company's actual earning figures for the past two quarters. Much confusion regarding recent insider sales within the past months. Market Makers had been liquidating large positions held from the August '97 and before period. Perhaps in response to the insider sales activity and the inability of the company to come close to analysts' earnings estimates. The Company was in a 'quiet' period where there was no "appreciable" news to report. (Perhaps because of their awaiting the validation from outside sources for claims relative to the AcCell System) In short a very pessimistic environment. Is it any wonder that the stock-price had fallen to set a new 52 week low? That is where we have been. STATUS OF WHERE WE ARE CURRENTLY, AND LOOKING TOWARD: A recent press release that correlates AccuMed's claims of validity of their cytopathology system, perhaps suggesting a long awaited increase in sales for the cytopathology line. A recent strong pre-earning release, informing of improved market acceptance for the cytopathology system. And large orders for the Q-4 molecularbiology lines which have been providing the bulk of the revenues for the company. A loan package agreement as a result of strong sales in the molecular division. Indicating that AccuMed has a viable continued revenue stream capability at least in that sector. Recent insider "purchases". A fundamental change in the Company's internal structuring that suggests a $2 M cost operating expense-reduction. Strong analyst following/support. A corporate revitalization statement by the CEO for a continuation of market penetration for all product lines domestically and internationally. The close of the second year where pro-forma sales projections have been met and exceeded. Other R&D product lines; ie., AcCell Savant getting closer to market. Given the acceptance that the; company's present stock price has been discounted because the firm's expected return to shareholders in the form of earnings has not been met, the condition of an increase in stock price is possible when the criteria are met. Those who believe in the Company's ability to increase revenues/market penetration while reducing expenses should see an upward reversal in the stock price. The tax selling scenario is an exogenous factor that may or may not be the real culprit for the recent selling situation. If it has been then the closing of the window for that situation is near and can only benefit the case for an increase or stabilization in share price. Bottom line, the same as yours, - accumulate shares at these levels. Frank