recent news implies that the Company will try to
go more leading edge molecular biology and genomics
course. Previously this was a basic roll-up shop.Buy
revenues on the cheap and peddle the products better.
There was some internal new product generation, but
that appears to be slowing and Motto will never expand
R&D budgets. And lets face it Cincinnati is not the
mecca of biotech breakthroughs. So let's see how the
new course unfolds and let Motto himself ante up.
KITS reports a pre tax loss of $1,625,000 (11
cents/share) but income of $1,908,000 (13 cents/share) for the
fourth quarter. How can they have a tax benefit of
$3,533,000 (24 cents/share)? These fokes not only can't grow
the top line, they can't add. The KITS story is not
Stocks do poorly without mutual funds actively
buying the shares. Funds use computerized winnowing to
eliminate companies which show revenue growth less than 15%
from the year ago quarter. KITS has delivered single
digit growth numbers for several years and is not a
contender anymore. Look at the older posts on this board
and a long term chart of the stock price then KITS
story will come sharply into focus.
The company has announced earnings to come this
Thursday. Their 4 Q #'s are generally the strongest so I
expect that they will break .50/share. At .50/share,how
can this stock not trade above $10/ share? Go
The medical technology indices are very strong
and have not declined with the tech sector. The
problem is owning KITS stock is one sure way to have this
investment opportunity pass us by without making a penny.
The revolution is here but the single digit sales
numbers consign us to the dust bin.
What a difference the dividend makes. While I
push my tired old Kia Sephia down the hill to start it
CEO Motto is in Soho for select art pieces. Rumor has
it he stayed at the Regent Wall Street where Greek
Revival puts one in the proper mood. While dining at the
Black Pearl on deconstructed suckling pig he exclaimed
the Louis Jadot Meursault 97 to be nutty, toasty and
fruity with the kind of rare depth one seldom
encounters. As long as his dividend check shows comes in the
mail this lifestyle will continue.
A growth stock that failed to meet expectations.
I have called the company and they do buy into the
fantasy that the stock is overlooked and undervalued. How
this idea gained traction is beyond me. The facts are
on this board and if any corroboration is needed the
Red Chip Review has a 9-27-00 report easily available
for $15. The Meridian website has an analyst with a
buy rating on KITS but it is tainted. Tucker Cleary
is most probably a third rate underwriter looking
for future business from Meridian. They get 9% of the
next offering so a little analyst coverage is a small
price to pay.
The news seems good, lots of impressive looking
releases. If this company had delivered double digit
revenue growth KITS stock would sell for $20 a share.
Until we get double digit top and bottom lines all the
press releases are meaningless. I know the playbook all
too well. This is a good company but they need to
find higher growth product lines. Single digit revenue
growth is the real reason why the stock has done nothing
Mr Morris, an analyst at Red Chip Review put out
a Sept. 27 report on Meridian Diagnostics. What is
interesting is that my posts for the last six months and the
report conclusions are a close match. Single digit top
line growth is not "growth" by any objective standard.
The biotech initives will do nothing for the near
future. Nothing good has happened for shareholders since
the summer of 96. Sure they did a good job with Gull
but slipping into single digit revenue negated any
possible shareholder value from that acquisition. The 1999
annual report crows about shareholder value, we are
still waiting. The company has made several flattering
comments about it's sales and distribution network. What
kind of salesforce cannot do better than single digit
revenue growth, especialy the North American sales