Moderated By: Arthur Radley -- (Not Moderated) -- Started: 12/14/1997 11:07:00 AM Revision History
Business:
Polymedica(PM) is a leading provider of targeted medical products and services primarily focused in the diabetes supplies and consumer healthcare markets. (PM) sells diabetes supplies through its wholly-owned subsidiary Liberty Medical Supply,Inc.(LM)
(LM)is one of the leading mail-order distributors of diabetes testing supplies to patients who use insulin and have Medicare or private insurance coverage. (PM) products are focused on three areas: female urinary tract discomfort, digital thermometers and medication compliance products. PM professional products represent one of the broadest lines of prescription urology products, including urinary analgesics, anti-spasmodics, local anesthetics and suppositories.
In August 1996, PM purchased Liberty Medical for approximately $10M.PM felt so good with the investment that on Jan.21,1997 they issued the following statement..."the company expects net income growth of more than 100% and revenue growth of 60% for fiscal 1998(March,1998).
It appears that PM was a little off on their predictions. For the first six months of fiscal 1998, revenues have exceeded all of 1997 fiscal year. Six month earnings for fiscal 1998 are .21 as compared to .13 for fiscal 1997.
To give you a better feel for the growth of PM, I will quote from the press release given on October 21,1997 by the CEO, Steven Lee..."At Liberty Medical, we now service more than 50,000 patients, an approximate increase of 200% in the customer base since the Company's August acquisition of Liberty Medical. Thousands of seniors with diabetes continue to be attracted by our informative advertising which promotes the benefits of automatic mail order delivery of essential testing supplies. We expect a significant market expansion next summer when an estimated 2 million non-insulin using seniors with diabetes become eligible for Medicare reimbursement. Everyday we are building a valuable asset which includes a database of existing long-term customers as well as new customers who will qualify for reimbursement under the new guidelines"
Insiders control 40.5% of the stock. I like it when insiders have their wealth riding on the success of the company stock.Usually, you find they are better stewards of the company money and for you as a shareholder. If 3rdQ numbers come in above .13(reported late Jan) look for PM to at least increase by 50% for the year(1998).Also with the new reimbursement for non-insulin Medicare patients to kick in July, 1998, look for rapid growth in both revenue and earnings.
Good Luck to us all in 1998! |
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