Aspect Medical Systems, Inc. (NASDAQ:ASPM)
The Company develops, manufactures and markets an anesthesia monitoring system that its call the BIS(r) system.
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overbought
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I don't like it.
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MEDICAL NOTHING LEFT TO BE SAID
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This stock had an enourmous one-day loss on 3-13, and it is bound to bounce back, once people realize that this company is ready to rocket off to great future earnings.
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HMO's and insurance may mandate use. Research orgs may institute use verticaly
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02-23-07 This stock is up 11%. Now is this an acquisition? I can't find any relevant news. I don't think this could be just a buyback; but then I have been wrong before.
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Evolution is one characteristic, which continues unabated. If it took a while for humans to unravel the mysteries, it took human even less time to replicate it to all aspects of life. Thus all walks of our life keeps on evolving; medicine and medical devices too have not been left behind. We have moved from crude drugs and procedures that existed centuries ago to personalized medicines, devices and therapies that can be designed to suit the patient.
In the U.S. alone 15 million people suffer from depression each year, 4.5 million from Alzheimer’s and many more from countless other brain related diseases. An early detection for such patients translates into better chances of recovery. It is here that brain-monitoring devices come into action. Aspect Medical System (ASPM) has come up with an ingenious index called Bispectral (BIS) Index patented by the U.S. Government, which measures the brain activity during an operation and related sensors and equipments to monitor it. All these together form the BIS system, which the company manufactures and markets as an anesthesia monitoring system.
The company made 71% of its revenue from reusable BIS sensors, 22% from equipment sales and 7% from strategic alliances with other original equipment manufacturers who uses the company’s products in their equipments for the nine-month period ended September 2006. During the same period the company made 78% of its revenue from domestic market and rest from international market which has largely been the trend for the past few years.
The anesthesia monitoring market is in the range of $600 to $700 million of which ASPM with 80% market share dominates. The BIS system is currently used in 45% of all domestic operating rooms, which has the potential to spread to all 20 million U.S.operating rooms. Apart from that, this system can tap the approximately $500 million depression therapy market and $200 million Alzheimer’s treatment market effectively. Thus the future looks bright for the company, as bright as the new applications for which the BIS index can be used.
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Aspect Medical Systems. Most Recent $ 19.55.
Up $ 0.86. Up 23.66% since September
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Good company, just over sold right now.
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I do this for a living. This technology is a joke.
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Timelag while interest builds.
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Aspect has many competitors but they have product name recognition. They also might be able to break into the market of depression and alzheimer's disease. Nonetheless, ASPECT leaves a bad taste in the mouth of most anesthesiologists because of their marketing techniques so many docs avoid using the BIS monitor. However, I think once the movie on awareness under anesthesia comes out, patients will ask more about this problem and so doctor's hands will be forced to use the BIS monitor. This may drive the stock up. In the end, Aspect keeps making lots of money. The disposable strip used to record BIS data costs $20. That's a lot of cash comming to Aspect each time the monitor is used for a surgical case.
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Picked by pnshark
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