Fonar's acquisition of 12 Upright MRI Centers to manage is the beginning of the break-up of Fonar. They will most likely sell the MRI manufacturing business to a GE competitor and then focus on what they do best which is managing MRI Centers. Because their technology is extremely valuable I expect the stock to go much higher.
Why on earth would GE want to buy the Stand Up technology? The Stand Up patents are dated 1998 and 1999. How much do you think it's worth when those patents will soon expire? Plus there hasn't been a new machine sale in several years? Who wants outdated technology that isn't selling? And to make matters worse, they just shelled out $34 million to manage clinics that they use to manage anyway. This is the second time they've purchased the managament rights to the very same clinics? It's just more money in Tim and Jevan's piggy bank. Look at their old year 2000 10K. Back then they had purchased magangement rights to 34 clinics? And now they're buying back old, lost business? And they paid more than they'll ever make on them. Paying $3,000,000 per clinic just to manage the office and billings? Most service companies are hired for their good services. And these clinics have already dumped Fonar/HMCA once before. And what happens when another round of Medicare and insurance cuts hits?