CMED�s 30-40 cents rise (yesterday) is basically a sympathy effect with MR, which is a stronger and well positioned company for the future. The main flaw with CMED is its humpty-dumpty putting together business with no long-term plan.
HIFU is far away any sure success. It can build another bigger machine but the buyers may not touch those machines. The jury is still out there about the effectiveness of HIFU therapy. The method targets specific tissues but can not differentiate between cancer cells from good cells. The treatment leaves dead tissues right after the procedure, which are prone to necrosis and can cause profound irreversible distress to the patients (check HIFU guideline, http://www.prostatecancercentre.co.uk/treatments/hifu.html).
However, HIFU is a good and sexy business idea for businessmen and they will try to make a buck without thinking the future consequences.
I do not believe CMED�s ability to make the machine or therapy any better considering its poor R&D expenditure. A better solution will probably come either from US or European countries! There are some two dozens companies working to solve the cancer problem with a more targeted way than a blunt hammer approach.
For FISH to be integrated into CMED�s business, it will take some years to come with not knowing whether it can really solve the high throughput problem with the technology. I doubt about its capability. Again, it will need help from the west!
The most troubling part of CMED business is its lack of details to investors. We do not know who is doing the accounting let alone the standard of accounting. No doubt it will beat all the projected numbers without disclosing much details.
Only bright spot with this company is its ECLIA business. But, it must be facing stiff competition from companies like Roche and Fisher, which have superior products and deep pockets.
PS. I will come back whenever I feel to respond. Any personal attack is basically sign of idiocy and desperation.
CMED's gross profit margins are much higher than MR's, an indication that CMED sells a better product.
CMED's selling expenses are almost negligible compared with MR. Thusly, CMED's operating margins are about double MR's, an indication that CMED sells much better products.
CMED has a CFO. Why don't you ask him about the accounting.
< Mr. Takyung (Sam) Tsang joined our company as our chief financial officer in January 2005. Mr. Tsang was an advisor to the company for the areas of accounting and finance from February 2004 to December 2004. Prior to joining us, Mr. Tsang worked as a manager of KPMG Hong Kong from March 2001 to January 2004, and also worked as a manager of Ernst & Young China from January 1999 to February 2001. Mr. Tsang is a member of the American Institute of Certified Public Accountants and the Hong Kong Institute of Certified Public Accountants. Mr. Tsang received his bachelor's degree in business administration from the Chinese University of Hong Kong. >
If you want poor disclosure, look at CHINA.
My problem is not with CMED�s own CFO. He is probably a good man but he is also an employee and gets paid from CMED. The question was about independent accounting companies that certify companies� accounts. Otherwise, it is like fox guarding chickens! CFOs are not angels, my friend! Double-checking of books is very very important!
toddly: Good Post.
However biased, it is ALWAYS good to have opposing views on this board...just to keep us in reality. We'll know soon whether this rocket ship has the fuel to get off the ground.
Saleem, I think the mother of all resistance is at 29. Also, I wouldn't count on Tuesday as the mother of all dates for this stock to react. Why? Just because everyone thinks it will be. We may get a delayed reaction of up to a few days.
You should thank yourself for not putting money in a black box. Needless to say that not all China companies will make it in the market. I woul;d go with companies that have solid products and services. Amalysts' coverage is of course a big plus. Atleast, they will have different takes on same stock and you can do your own DD.
I see China transport stocks to do very well. Please do your DD!
Do not behave like an idiot! Some stooges are not liking my messages! Do not tell me that you don't understand what is going on. I have only one ID and it was not created yesterday or today!
Imposters will not deter me at all!