Forum Archive Index - July 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Snoopy and others.

 

I can afford " to have a bit on the side " by investing in MMD. I do my homework and take great care.

 

Snoopy, if you read their web site: < www.micromed.com > you will find that they have two divisions: The first is e' Health.

 

I can't estimate its true value on the open market but it should be between $ 20- $30 mill. or say > 20 cents per share. Their number of contracts is increasing.

 

Therefore, your answer that the goodwill value in MMD's price is 100%, is incorrect!

 

Sure, your next answer that MMD could be worth between $ 1 and 10 cents is some mitigation but I very much doubt that the e' Health division was in your mind when you said that! 

 

What is MMD worth? Answ: 82 cents, if you sold now!

 

Then, to say that " this is ITC all over again ", is very premature, to say the least!    

 

Each stock has its own positives and negatives peculiar to that stock eg. by investing in MMD, he/ she has access to the full assets of MMD while ITC may own a minority stake in a winner!

 

The correction to MMD's share price may be very temporary, now yesterday's confusion is being cleared up: There is a continuing high interest in the stock! Sofar, 47 posts today on Ozestock! Turnovers have been very good!

 

When I say that sentiment has changed, I am thinking of a much longer period of adjustment. 

 

It is not wise, I think, to confuse the terms " heavy correction " with " changed sentiment ":

 

Against a heavy fall of 45 points in Australia, MMD recovered by 5 cents today and is only 9% below its all time high of 90 cents! ( That 90 cent price resulted from a 12 cent rise on one day! ). The closed US market has not helped!

 

But as I said before, MMD is a speculative stock; I choose this stock, because in my opinion, potential benefits outweigh potential risks!

 

Current price @ 82 cents is 60% higher than when recommended on April 26, when it was 50 cents.( I did a lot better than that! ) 

 

I also doubt whether Buffett will tell you if he made a small investment in a similar speculative but interesting stock!

---

As to the progress of MMD:

 

A statement was issued on 10.26 a m - See Stockness, Aus. news. They confirmed that the human trials will start at the end of this year.

 

Prof. Don Esmore, who leads the MMD trials, stated that in the case of heart failure, only 5-10% of the $ US 12 Bill. market would need the latest and large new Heart to replace the whole heart! 

 

Note that only the rich will be able to afford this new heart!

 

The rest of this large market could do with a Heart " Assist " type as trialled by MMD. It is complementary to the full heart replacement!

 

There will be another three companies to trial artificial hearts but MMD thinks that theirs is more advanced!

 

So, there will be more dips in the MMD share price to come! 

 

But it will always be up to the investor to buy, hold or sell MMD and to do so, will be entirely at their own risk!

 

My recommendations will only be valid for the initial given price. Naive investors may think that because I recommended MMD @ 50 cents, that this recommendation is still valid at 80 cents or $2. They themselves have to make that call!

 

Gerry

Holds MMD