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

To: Cisco who wrote (1235)	1/21/1998 6:43:00 PM
From: Frank Buck	Respond to of 1894

Cisco, The JAMA article should have boded well for AccuMed's AcCell. It just substantiates my belief that many perspective investors either: 1) Do not understand AccuMed's position in this field. 2) Generally lump the AcCell/TracCell into the fully-automated field that is currently at-suspect to the established conventional methodology practices. 3) Question the future sales of the AccuMed cytopatholgy equipment. 4) Are waiting for some substantial quarterly sales numbers from the cytopathology side (before committing to the stock) because of past quarters of disappointments. 5) Are not aware of AccuMed as being a potentially strong viable player in this sector for whatever reason. Ie.,marketing, distribution, below radar stock price, non-institutional affiliations, etc. 6) Are waiting for more definitive outside lab case studies (of 'cost saving' measures) to ensure that labs will "realize" the projected cost saving claims of AccuMed devices. 7) Unknowledgeably (or fearfully) and erroneously assume that a primary screener (if passed for approval) would totally usurp AccuMed's technology. 8) Or a combination of any and all of the above. The announced '98 multi-city scheduled conferences will hopefully awaken and educate not only the Labs, but also the general investment community. What a haircut for NSIX. I really love the NSIX response that mentions... The level of sophistication and professionalism in a military lab is of a higher caliber and not indicative of outside lab performance numbers. Nice try! Fhaa-gedd-uh-bod-ett! That could ONLY back-fire way BIG right in their face. Flattery and disparaging-remarks in one statement. Real good move insulting your market! (ROTFLMAO) NeoPath made a great save with their release. Timing of the JAMA study (release) couldn't have come at a worse time for them. Seems the bar just got raised again! Frank PS: Did you short NSIX?

To: Cisco who wrote (1235)	1/21/1998 7:17:00 PM
From: CARYTRE	Read Replies (2) \| Respond to of 1894

FUTURE FLUFF AND WHERE WE GO FROM HERE!!!!!! UP UP AND AWAY!!! To Cisco and ALL, I have some forward looking comments to make regarding valuation, and the future public offering. Cisco brought my attention to an Accumed profile written in the "Wall Street Corporate Reporter" dated May 5th 1996. In it Peter Gombrich discussed stock valuation saying "Number one the company is very undervalued at this time because it merged with a public shell with a very low baseline." That statement has come to mind in my thoughts regarding a public offering and how we would fair in its aftermath. Assume Peter is still regretting not having made an IPO thru a name brand investment bank. Perhaps they feel they can do it "right the second time". Assume Accumed can attract a big player to handle the second IPO, lets say a Goldman or Solomon. This is likely because of the credible participants, credible products, huge market and, a profitable company whos value is way below its peer group. What could happen in this scenario. I think it is likely that the IPO would be done at a market cap with all the FLUFF of its peer group. That would be at 10 or 11 times current sales. 100 to 200mm cap? The ultimate benefit to us and Peter is twofold. Assuming Accumed retains its pre IPO ownership of "at least 50%" then there will be consolidation of sales and earnings to our balance sheet. The allowable percentage of ownership enabling consolidation is a question but it may be as little as 20%. Secondly and perhaps of greater value to us would be the ownership itself. The value of the underlying company stock could be the biggest kicker. Because for every share of acmi there is the underlying value in Newco stock. My assumption is that this is one of the concepts driving this deal, and that Peter sees this potential. I also am assuming that some of the "shareholders" participating in the funding of Newco may be officers of Accumed (I am trying to confirm this). While that possibility did concern me initally, my feeling is that the overall credibility of this deal is born out by Sakura, at least. Assuming that Accumed retains a big league player to handle the IPO, I see the possibility of a steady progression upward in the mother company stock preceeding the IPO. After all these guys are paid to be greedy, they would most certainly want to profit from the disparity that exists among the peer group price levels. cheers, C.S. I