I read the earnings transcript, and it sounds to me the sales manager whose sales guys call on doctors offices/hospitals/etc. are making good progress after a long time of not making such good progress. When I first learned about ABAX's incredibly fast blood analysis disk products, it sounded like a simple idea doctors/hospitals would "get" in a hurry. I was wrong, but the doctors/hospitals appear to be "getting" it at long last. Am I misreading the situation again?
I don't think you are. ABAX spent many years working on different sales models to the brutal human medical market (direct sales, distributors, mfg reps etc) but never really settled on a workable model until a few years ago. They hired an excellent (from what I can tell) sales manager, hired strong sales people, and have steadily increased their sales force over the years. Between their strong direct sales force and high quality distributors, ABAX now has gained both traction and momentum in these markets. They have success stories to tell and success stories sell. The results of these efforts are now being seen and booked. Each time they sell a Piccolo, a little economic miracle takes place for ABAX and others. Consider that this little machine will sit there and generate fantastic income for the the Doc's, Abax, insurance companies (lower costs), and the patient wins as well (no waiting, lower cost tests).
I don't think the problem was that Doctors Hospitals etc didn't "get it". The real problem was that they never heard of the technology because of the less than effective job that was done in the past by ABAX. Remember how small ABAX is in the scheme of things. They are literally "the little engine that could". Time has proven that their vision is accurate, their management is capable, and their products perform. In ten years, this will be a BB dollar company.
Even though ABAX is low volume on a daily basis, is this approximately 10% selloff in the past 30 days just technical after the big runup or is there something fundamental causing it? Earnings should be coming in a few weeks.