Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : DD-CIA Due Diligence Central Intelligence Agency -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey L. Henken who wrote (1)	6/28/1998 10:38:00 PM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 120

Alright I'll go ahead and get my second pick posted here, ABMI. American BioMed is a small company in the minimally invasive surgical field. Although the company has only 25 employees and has never made a profit they have some very valuable technology. Valuable to whom you might ask? Besides the current shareholders I think ABMI's broad product line and 27 patents makes them a prime acquisition target. If ABMI is acquired by another larger company in this field it will be for several times what the company the .62 sells for today. How do I know? biz.yahoo.com Well first off I have talked to the company's CEO Steve Rash on numerous occasions. He has been labeled a turn around and takeover specialist. Although he has had that title for 3 long years now at American BioMed he may soon live up to it. I'll tell you why: The rate of consolidation in the health care industry has never been higher. Especially in this corner of the industry. Let me give you some examples. Arterial Vascular Engineering(AVEI) acquired World Medical Corporation for $62 million dollars on April 24th: biz.yahoo.com On June 24th BSX(Boston Scientific) purchased Schneider to broaden their product line: biz.yahoo.com AVEI was also looking hard at Schneider but they could not afford the $2.1 billion price tag. How will AVE continue to compete? How about JNJ and the other players in this field? JNJ has been losing market share rapidly and they could easily afford to buy a small company like American BioMed for simple patent protection alone. But that's not the only reason as JNJ just like AVEI does not have an atherectomy device at all, not even in R&D. For these reasons I think ABMI could be next on the acquisition block. AVEI has even admitted they are looking at 10 to twelve different acquisition possibilities: Message 4784737 Remember we are merely speculating but there certainly is plenty of evidence that would seem to make American BioMed and excellent acquisition choice for AVE. Like what you say? First off AVE does not have a catheter bundled with AVE's stents yet. As I said they recently bought World Medical which does not have a proven product line either other than some catheters for $62 million. Basically they were purchased for their AAA Talent stent system which will not reach the market until 2001. If you ask me to date AVEI is still a one trick pony. A very good pony but they could still use a broader portfolio. I have read post after post at the Yahoo AVEI thread that confirms that AVEI does not yet bundle their stents with a catheter. American BioMed's OmniStent designs are very similar to the stents that World Medical currently has in phase II testing. Will AVE use a catheter designed by World Medical to deliver these stents as well as their current designs? Are they are looking to an outside source for catheters that could be quickly designed for this purpose: American BioMed's catheters could be just the ticket. Will that happen? Probably not, I'll admit that it probably won't happen but it's possible. What other products do they have that might round out AVEI's product line? How about the OmniCath? Recently Dr Summers former Chairman of the board and inventor of much of American BioMed technology have discussed some of the advantages of this atherectomy device currently resuming phase II testing. Now remember as I said neither Arterial Vascular Engineering nor JNJ has an atherectomy device. New protocols for the OmniCath are set for the phase II trials will be starting again. The markets that this atherectomy device will compete in are in excess of $500 million according to American Biomed's calculations when it is approved for all hoped for uses. americanbiomed.com biz.yahoo.com biz.yahoo.com Perhaps the Guidewire MicroFilter(OmniFilter) which also will address a market as high as $500 million starting in early 1999. The Company has developed a percutaneous temporary filter which is mounted on a guide wire and is used to prevent stroke-causing blood clots from reaching various organs of the human body. americanbiomed.com americanbiomed.com American BioMed also has the OmniStent technology which could enter phase I testing this year. These stent designs are very similar to World Medicals. The bifurcated OmniStent™ is a Y-shaped bifurcated stent designed for use in aortic bifurcation. However, small versions may be used at any branched blood vessel: americanbiomed.com biz.yahoo.com American BioMed estimates that it's products compete in a $10 Billion market. Their silicone catheters no doubt have to compete more on the basis of price and performance than the fact they won't fragment if they fracture or cause an allergic reaction. Still they do have those added advantages. American BioMed presented at the National Vascular Meeting in San Diego two weeks ago. All indication are that it was a huge success. Dr Ahn the company's principal clinical investigator and one of the most widely published and respected vascular surgeons in the country was there and held a workshop on the use of American BioMed catheters. It was essentially the coming out party for the Ahn Thrombectomy Catheter: americanbiomed.com The company also has the broadest line of 100% silicone catheters in the business. It is estimated that as many as 18 million Americans are sensitive to latex. Severe allergic reaction to latex catheters can result in anaphylatic shock and has actually been the cause of several deaths world wide. Anyone in the health care field can tell you latex allergies are becoming more numerous every year. Check out ABMI's other 100% catheters by clicking on the URL below: americanbiomed.com The $2.1 billion purchase of Schneider by BSX pushes AVE and other companies in this field closer to acquisitions of their own. ABMI could be had for a whole lot less than the $2.1 billion that Schneider went for today. ABMI has a broader product line. It would be a great fit. If ABMI has to go it alone they can indeed do just that thanks to a recent signing of a $5 million equity line of credit. This money may be all they need to get into 1999 and a chance at true profitability: biz.yahoo.com ABMI is ISO 9001 certified and is currently working through one OEM deal and negotiating another larger deal according to the last 10K. I am hoping that soon we will see the company announce CE Mark approval which will ramp up sales in the European Community. Here is their latest distributor announcement: biz.yahoo.com True, ABMI has a history of disappointing investors and 1998 could be more of the same but then that's why the stock sells for .62. Please feel free to ask any questions here or at the ABMI thread: Subject 19556 Regards, Jeff