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Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: James P who wrote (159)	3/14/1998 11:28:00 AM
From: John William Bowman	Respond to of 2887

Hi all, I bought into this stock in Dec. of 1996 and have been averaging down ever since I see this as a long term hold, but a great stock, given enough time. Working in the medical profession, I appreciate the posts on medical as well as a investment point of view, I see only positive things for this company, but not in the near future, we will probably see a loss when earnings come out which will shake out some, of the more nervous types. Have a great week John Long on ABMI, FINE, AMLN, AWLT but I have been wrong before!

To: James P who wrote (159)	3/14/1998 6:30:00 PM
From: Aishwarya	Read Replies (1) \| Respond to of 2887

Hi Jim, Your patience will pay off as this company is in a turnaround situation.Actually this is the best time to average down. You will make money on ABMI !!! For the new folks who have been doing DD and reading the last few news releases POLAMEDCO is in an OEM agreement with ABMI. Let me go on to explain what OEM means. I do not know what the three letter word stands for exactly but it has a long meaning to it. Let me take an electronics company for an example sake. Suppose they manufacture connectors on PC's. They have to make changes for clients to their existing product line in order to allow easy retrofit in their systems. Whatever the change in production line it is expensive to re-design their connector to accomodate their architecture. Now all companies make minor cosmetic changes to the product to be able to satisfy the clients needs. That means some design changes to their own manufacturing facility to accomodate it. Now they have a certain number of pieces required to make that change what ever it is. In my experience as a thumb rule most manufacturers demand an order of in multiples of 10,000 to call that an OEM quantity. Now take Polamedco's case. The 1st 10,000 units are delivered in March. If all goes well and they like the end-product and it fits the design spec. given to ABMI then they will give the green signal to go ahead and manufacture the other 290,000 units. Keep in mind that there are companies willing to take a blue print of the design and be a cost effective OEM supplier to others in a particular line of products and add to their list of capabilities. Also no guarantees that others will want the same design so profit and the cost of design time and retrofitting of the plant must be recovered within the first order which means more profits if more orders come in. It is very difficult to be an OEM supplier as a lot of trust has to be developed between the companies doing the business together. Also the manufacture in that environment is cost effective and less hassles for the client. In a nut shell you can also call the client a reseller and thats what OEM is all about. Regards, Sri.