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

To: Y2k_fan who wrote (173)	3/15/1998 10:34:00 AM
From: Jeffrey L. Henken	Respond to of 2887

Let me answer some of your questions the best I can. Your questions are reprinted in italics. "It looks that ABMI is a no-brainer. Do you think that AVEI will try every mean to buy ABMI? They should if they want to keep the technology lead." It's no secret that American BioMed has been actively seeking a strategic partner now for several years. I believe they could be a take over target but I don't want anyone to count on that happening. American BioMed can make it all on it's own. That being said, I'll try to answer your questions. AVEI as a possible suitor? Doubtful but certainly not impossible. The reason I doubt it is that AVEI has done such a great job so far of concentrating it's efforts on the coronary care market. So far this simply is not a strength of American BioMed's. I feel that the larger multinational healthcare companies who focus on minimally invasive surgeries would be more interested in acquiring or forming joint venture partnerships with American BioMed. Three names come automatically to mind: Baxter International Guidant Johnson & Johnson There are many other companies who might be interested in American Biomed but the competitive nature of this business makes ABMI particularly attractive to anyone of these companies as they attempt to either retain or regain market share in their targeted markets. American BioMed has some very unique technology and the patents to protect it's usage. Early on in the discussions that took place on this thread the company's all silicone catheters were disparaged by one poster who suggested that anyone could make them. It's true you cannot patent silicone but it is far from easy to make a silicone catheter. If the big boys are really interested in this technology then they might just rather buy the company than try to develop a competitive product. "The major concern which I have for ABMI is the "actual number" of outstanding shares. Are there hidden warrants or debentures?" American BioMed does not have a great deal of cash on hand. I believe at the end of the last reported quarter that they had around $700,000. This certainly increases the probability that the company will have to raise additional funds by any means available. Without additional funding the R&D budget will cannibalize all the companies funds in a hurry. I looked at the maximum number of share allowable and found it to be 50 million. No one likes dilution but I would rather see that than have the company run out of money. Remember no matter what arrangements are made for the company to acquire additional funding it will mean more cash in the company coffers! In addition in a Reg. D or private placement shares and warrants issued cannot be sold for a significant period of time. What this means is that although the number of shares issued has increased the actual float remains the same for whatever time period is denoted in the agreement. All shareholders, especially those who take place in a private placement, want the company to succeed long term but only those holding shares bought on the open market can sell before the specified date. Bottom line I expect you will see some form of an agreement made by the company made to raise more funding. I for one do not see this as a threat to the current rise in share prices. "With the potential, ABMI looks extremely undervalued". UNDERVALUED? I COULD NOT AGREE MORE! Go ABMI! Regards, Jeff