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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (6938)	4/25/1999 10:40:00 PM
From: TwoBear	Respond to of 78594

Mike, I saw that and was extremely surprised. I had just attended a presentation from ADAC at a cancer symposium. Basically, ADAC now has the software to allow PET imaging on a regular Nuclear Medicine camera, which is extremely cheaper than a real PET scan. The technology is called coincidence imaging. I spoke to the Nuclear Medicine head and she stated that ADAC was definitely a leader in this technique over GE. I have to say the actual presentation (slides, etc.) was weak, but you can't beat the technology. It is the cost effective method of doing a PET scan which is becoming popular in certain types of cancer because it detects higher metabolic activity that tumors produce. Anyway, Nuclear Medicine is 75-80% of ADAC's business, whereas RTP planning systems is about 15%. So I can say that they are still selling those systems like hotcakes and are the market leader, but that only accounts for 15% of the whole. I live in a SE metropolitan area of about 500K and every metropolitan system uses ADAC for radiation treatment planning. ADAC is now trading at book and with a very low price to sales ratio which I believe makes it worth a look. I would like to wait and see what the actual earnings will be and then evaluate. But, just on my knowledge of the field, I am considering purchasing a few shares just on the basis that I know they will still operate as a going concern and will eventually return to higher levels. On the impact of VAR I see little if any. The only product that they compete on is RTP systems and that is where ADAC is still the leader. Varian is still in the infancy stage in that arena. As far as the longtime outlook for capital equipment manufacturers in the future, it is becoming cloudier by the day. Our CEO just told us the other day that we will never make money on an inpatient again! So I would only be looking at companies that equip outpatient services, of which both of these do. The new outpatient services reimbursement rates (APC) is still in the comment stage with HCFA. If these are not reasonable it will become interesting in the year 2001. I will further discuss that issue later when I have more time. 2

To: Michael Burry who wrote (6938)	4/26/1999 9:45:00 PM
From: THE FOX	Read Replies (1) \| Respond to of 78594

Off Topic, Mike, I read this thread and any other Value Investing information I can find. I have started to read Security Analysis but I haven't really made a dent in it yet. I purchased the 1934 edition as it is considered a classic. Question ? I recently purchased IDXC a Vermont Software Company . For some reason I thought this is a good value investment but I really don't have a clue. Does anyone wish to comment. I enjoy all of your posts and in about 5 years maybe I will start to understand and try to contribute. Thanks, Bob