The problem is not the Melafind device. It works and has a legitimate place in a dermatology practice. The problem, our problem, is time. We are burning through cash requiring us to dillute existing shares. And, in spite of this, everything seems to be rolling out in slow motion. Let me give a small simple example of this. Attendees at todays conference were given some brochures that Gulfo indicated were just formalized. These brochures will be given to patients to read before going into see the Derm. This is a good marketing tool. WHY DID IT TAKE SO LONG TO PRODUCE THIS ??????? A college marketing major could have produced these brochures in ONE day. Today Gulfo admitted that little or no pressure was applied to Dermatologist to accelerate the number of times the device was utilized each day. Our ability to recover the cost of the equipment and begin making a profit on these placements is contingent upon active utilization as soon as possible.
I believe that endo and exgas have hit the nail directly on the head.
At this point, it is nothing more than time vs. expenditure. I was a bit surprised by endo's comment about mela not "pressuring" the derms to increase their daily utilization rates because that is simply not appropriate however; at least it appears that there are certain longs on this board who can think three dimensionally and who apparently can learn from the Bashers.
For the sake or argument, lets just say that the melatoy is an awesome piece of 21st century medicine and indispensable to humanity. So what? There is simply NOT income to satisfy the overall operational expenses and there really is NO magic ATM machine no matter how much the capt wants to bring it up. Obama cannot get away with his magic coin gimmick because the vast majority of people in government understand that it is NOT real. The same thing applies to mela and the magic ATM.
If I were a buyer for this company (and trust me, I DO have experience buying other companies), I would already understand the dire straits this company is facing. No way in hell I am going to come in and be a "nice guy" and offer tons of money just so the mela investors can make a profit. You have to understand that any potential buyer already HAS his own shareholders and his fiduciary responsibility belongs to THEM, not the mela shareholders. Such a company is going to sit there, like a predator waiting until the last dying gasps before he comes in and offers pennies on the dollar.
I know that there are a number of you who will be very angry with this knowledge being put out there but, I do not have the luxury of believing in unicorns or magic ATMs. I have no option but to look at hard, cold economic facts.
"Gulfo does not personally own mela and has virtually nothing to say about how much he is "willing" to sell it for. "
I guess you haven't seen the post by the others on the "poison pills" Gulfo has in place.
" Such a company is going to sit there, like a predator waiting until the last dying gasps before he comes in and offers pennies on the dollar."
Anyone you know that may be picking up your tab?
Sam, being a retired TV Guide editor and all perhaps you can help me out?
I remember some Twilight Zone (or equivalent) type program where this old guy made a pact with Satin for his soul. The old guy knew of land where there were billions of dollars of oil under that ground. He made a deal with Satin to make him look young again and transport him back in time before the oil was discovered so that he could be young again, purchase the land and reap the benefits of owning all the oil.
Satin did his part BUT, the guy was transported in time just a few years too short of the technology being developed to drill deep enough to get the oil not to mention, the guy only LOOKED young. He was still an old man physically.
The guy did not have the money to get at the oil and he was too old to wait out the next several years to be able to survive long enough to take advantage of the deal.
This is exactly the same kind of problem mela now finds itself in and I thought; "what a great example" for the folks over on the mela board who just cannot seem to understand what I have been trying to tell them for the past two years.
Knowing what a stand-up kind of guy you are, I thought that perhaps you knew the name of this TV show so that the longs might Hulu and watch the program to get a better understanding of what I have been trying to communicate to them for so long now.
Gulfo would not respond to the question how many units in the marketplace will it take to reach breakeven cash flow. WHY DID IT TAKE SO LONG TO PRODUCE THIS ??????? A college marketing major could have produced these brochures in ONE day.
So the bigger question is why you have money tied up in a stock that you know FULL well that the CEO is.......shall we say.......
will be available if Gulfo could be man enough to realize that he is a brilliant bring-out-an-awesome-product person but a loser build-up-a-company-biz person.
Dont know what the board of directors is doing here -- sleeping as usual at the wheel.
We think a whole lot alike. You've probably seen me rant on dillution - and the lack of marketing skills many times. I'm hoping the new PR firm solves much of that. But your last point is part of the key - and the simple way to solve it is this - utilization is not something that helps just MELA, it helps the dermatologist too. Even at a very conservative$100 charge to patients, not only is MELA making fifty bucks, but the derm is too, and if they are charging $200, then they net $150. How hard should that concept be to pass on to a Derm? It's called a partnership in profit, and the Derm has already spent the front-end money, so there is no additional cost to him that is not covered, only profit. That's why a JNJ or Glaxo or whoever will wind up buying this Company will have one hellofa profitable tool, I just hope it hasn't been dilluted to the point that those of us who were in early are not healed (smile). I own a stock called HOMB, and our Chairman would have both the customers/patients and the analysts eating out of his hands with a product like this. Unless there has been some unexpected bad news float to the top, everytime he attends a conference or analyst meeting, you see the stock pop! Unfortunately, we have exactly the opposite result - although this probably should have been expected, and it is likely that much of the drop-off today is simple profit-taking. We'll see.
Sentiment: Strong Buy
That's why a JNJ or Glaxo or whoever will wind up buying this Company will have one hellofa profitable tool,
Yet JNJ and Glaxco have not offered. So we shall believe YOU or a big Pharm? Why dont you tell the class that the big pharms have MAJOR reservations about this "profitablel tool" instead of buuling newbies into buying more shares??
Look at the positive stuff Gulfo did, for sure he made few mistakes, and may be he is going a little too slow.... but he is experimenting at this point, and it is better done before going on a massive campaign. Nothing equates to the usefulness of the machine and if it takes a little longer that's fine.