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

To: Harvey Barish who wrote (966)	8/10/1998 4:19:00 PM
From: Fred Levine	Respond to of 1605

They also make money by servicing equipment and training staff. Therefore, each site is like a printer--it develops its own need for cartridges, and add little to overhead.

To: Harvey Barish who wrote (966)	8/11/1998 12:01:00 AM
From: The Thrifty Investor	Read Replies (1) \| Respond to of 1605

Harvey, These are possible sources of revenue other than sales to new commercial EECP sites posted on the web: 1) Additional sales to existing U.S. sites. 2) International Sales 3) Rental Income (as you mentioned) I thought that it might be interesting to review the sales and EPS projections that Alan Tuchman, M.D. of Oscar Gruss & Son, the lone analyst that covers Vasomedical, predicted as of January 28, 1998 and compare them with the results available so far. Note that 1Q98 and 2Q98 results were available when the report was published. Predicted Actual EPS Net Revenue EPS 1Q98 (8/97) 1,041,756 ($0.04) 1,041,756 ($0.04) 2Q98 (11/97) 1,135,392 (0.02) 1,135,392 (0.02) 3Q98 (2/98) 1,380,000 (0.01) 1,678,163 (0.02) 4Q98 (5/98) 1,503,000 (0.00) 1,369,753 (0.03) 1998 (5/98) 5,000,000 (0.07) 5,225,064 (0.11) 1Q99 (8/98) 2,400,000 $0.00 2Q99 (11/98) 3,600,000 0.01 3Q99 (2/99) 5,800,000 0.03 4Q99 (5/99) 8,200,000 0.04 1999 (5/99) 20,000,000 0.07 (does not add exactly due to rounding) Sometime between 2 and 3 months ago, the $0.07 per share earnings estimate was dropped to $0.04. I do not know of any new sales estimates. It appears that the sales estimates for 3Q98 and 4Q98 were pretty good given that the actual results were +22% and -9% respectively from the estimates. The losses were higher than predicted most likely due to higher expenses. However, what I believe really drives this stock is the sales growth. Due to the high margins (over 70%) sales growth is what will make Vasomedical rise. I expect that Vasomedical would need about $15 million in revenue in 1999 to make the present $0.04 estimate. This would represent 287% sales growth. It is my belief that if this happens VASO will no longer be a dollar stock. Best Regards, The Thrifty Investor