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DexCom, Inc. (DXCM) Message Board

  • cmzabak cmzabak Mar 6, 2006 9:15 PM Flag

    MLTO...

    MLTO is really being shorted here...it will recover soon. I have been thinking over thier business model and i have a few things to share with yall. First, as we all now MLTO currently has the hispanic population in the US and Puerto Rico...GOT South America? Now this totals to roughly 3 million medicare eligible participants combined. Also, as we all know by now 1/2 of the 3 million medicare eligible patients have diabetes...this is the highest percent of any other race.

    So MLTO has 1.5 million medicare eligible paitents they can now sell diabetic testing supplies to, and durable medical euipment to any of those 3 million hispanics who have medicare. Also remember that currently only 1 million are receiving benefits. So the numbers begin to dwindle down, but this isn't the problem. The problem is with the durable medical equipment. Medicare will only pay for one product every 5 years. It's not like the diabetic testing supplies where they can reorder lancets and testing strips every 3 months. Say one of thier diabetic customers wants another wheelchair or a walker. Maybe they've gained alot weight over the past couple of years and their wheelchair doesn't fit them anymore. Well Medicare will deny thier claim if they already have had a wheelchair. Just pointing out the facts...not really a problem they still should be growing by leaps and bounds month by month. I personally think they need to sell diabetic shoes. Medicare pays up to $500 for a pair of shoes and orthotics every calender year...kinda sweet, but its not that easy.. They would need CPED's "certified pedorthist" who could travel to the patient and fit them for thier shoe and cast thier feet for the custom inserts. Maybe they are planning to do something like that in the near future....i hope! For now the DME is a good business...they will make alot of money selling wheelchair, walkers, canes, heating pads, wheelchair lifts etc. They also should be selling orthopedic products like knee braces and back braces...these products have real high profit margins.

    Another thing to consider is that Medicare pays on the 15th and the 1st of every month and sometimes thier slow about reimbursement. This could turn out to slow MLTO's numbers for the month...we might not see 1 million in rev for the month like we expect...i doubt it but its something to consider. Anyways, we should see alot positive news come out about moving to the nasdaq or OTC etc....and the celebrity!

    Good luck to all

    Chris

 
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