A China-based medical device company that develops, manufactures & markets advanced in-vitro diagnostics products using Enhanced Chemiluminescence technology & Fluorescent in situ Hybridization technology, to detect & monitor various diseases & disorders.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
So what is the big deal about a $30M share buy back, this is less than 6% of the shares outstanding. If I understand it correctly, CMED has three main product lines, the ECLIA, FISH and SPR systems. The ECLIA system is one of the two main revenue and earnings product lines, the other being the FISH system. The ECLIA is performing poorly due to other competitors offering the system at a much lower cost, and because many of their distributors are leaving them. The main product line, the SPR system is not going to generate revenues or earnings until later next year (2010), and SFDA approval must be achieved for the HPV chip set before hospitals can use the system. They have not had one hospital sign up for the SPR system, is that correct? Plus, the SPR system is draining money from the company, and the ECLIA revenues and earnings are falling meaningfully.
Is this just a "pump and dump" by big players? Is it more manipulation by the Company to dump stock? What is behind this rally, surely the 6% share buy back can't be a sound reason for the rally.
Guys, you are talking that "CMED has 3 main product lines, the ECLIA, FISH and SPR systems. You are saying that the ECLIA is performing poorly due to other competitors offering the system at a much lower cost, and because many of their distributors are leaving them. The main product line, the SPR system is not going to generate revenues or earnings until later next year (2010), and SFDA approval must be achieved for the HPV chip set before hospitals can use the system. They have not had one hospital sign up for the SPR system, is that correct? Plus, the SPR system is draining money from the company, and the ECLIA revenues and earnings are falling meaningfully."
Ohhh... come on dudes... before to say incorrect things, just READ the financial statements: in Q1 of the current financial year, CMED had increased sales and increased gross margin. The Company also paid a very good dividend (so, it has money - cash).
These are FACTS (financial statements and dividend paid) and not just words (ECLIA performing poorly, SPR will not generate profits till 2010, etc).
Whoever thinks that these facts (increased sales and gross margins and dividend paid) are fakes, can sell his CMED's stocks.
I believe that CMED is an investment bargain for long term.
CMED is a good company, with good products. High tech products with competitive advantage. Good and competite products in a huge potential market (the whole chinese population, that in long term, is getting older and older - remember the one children per family rule -. Old people get sick, lose their health and need medical surveillance. That is possible only with the Medical Devices Market growth. CMED is a major player in this field. And chinese government has the money to spend and construct a health system for chinese citizens.
Conclusion: CMED is a bargain for a long term investment.
If you are looking for short term trading, CMED is not your "paper".
I really like CMED as a longer-term investment, but its recent run up has caused me to take profits.
Should China Medical pull back into the $14-15 range, I'll probably be in again.
The hpv chip was approved last year and profits have been on the rebound since 2010 so my quick over view of the company appears to counter some of beinthelight's criticisms, but this is at a very cursory glance, their competitors that beat them out of the eclia market might very well be chomping in on their growing fish probes. The company's strategy appears to have been to diversify their fish probe market while also opening up to newer markets. Still the collapse of 2009 is over and while profits zig zag they have been moving upward.
They have also received approval for a pcr epidermal growth factor receptor kit for detecting lung cancer and a down syndrome kit. The company is expanding out in other words.
Done a little more research and their egfr assay looks like a really good move. Egfr based testing with egfr drugs have proven to be more effective than chemotherapy in the treatment of lung cancer and is a new enough technology that most of their competitors appear to be western phrama like Roche. Astra zenecca produces the medications that inhibit lung cancer, but a quick search of Alibaba reveals almost ten generic pharma companies already producing it in china along with two med tech companies producing pcr devices that could possibly be used for a egfr assay. Neither med pro or Xian depai though is marketing a pcr that specifically does egfr assays I also might be wrong in my assumption that china med's egfr kit includes an assay, it might just be the tools to take the sample from the lungs and test it in a typical pcr.
One small correction china med's egfr kit might not include a pcr, it is an assay.