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Advanced Medical Isotope Corporation Message Board

  • Dec 7, 2012 10:32 AM Flag

    Article on Market Playground about ADMD

    After visiting the website and searching on 'ADMD', I found this article, and here is a selection from it:

    Advanced Medical Isotope Corporation (OTC:ADMD)

    The first thing you need to identify in an OTC company that could appreciate in value is a catalyst. And I am not talking about a catalyst provided by the company. I am talking about an economical catalyst, or a need that the small company could fill. This is where Advanced Medical Isotope Corporation comes into play, because it’s not as though the company is light years ahead of all other OTC companies, but rather had the perfect situation fall into its lap.

    Nordion’s (NYSE:NDZ) luck has run out, and once the NRU reactor in Canada closes its doors, the company will have no effective strategy to deliver medical isotopes to the U.S. The company does have reserves, but delivering medical isotopes is a race against time, and Nordion cannot possibly deliver the needed medical isotopes from other countries in Europe or Asia.

    Advanced Medical Isotope becomes relevant through a process of elimination. The company has a working relationship with the University of Missouri nuclear reactor, also called “MURR”, which is one of the only reactors in the U.S. that can handle our country’s medical isotope demand.

    We, in the U.S., consume most of the world’s Mo-99, which along with its derivative, is the most used medical isotope in the world. We use it in drugs, medical devices, and even in certain appliances. When the NRU reactor closes we will lose most of this supply. Yet because of the relationship that Advanced Medical Isotopes has with the MURR reactor, it is in prime position to control this space, and has publically said that it could control 50% of global Mo-99 demand, pending legislation in the U.S.

    Up until recently the U.S. has shown no signs that it wishes to produce its own medical isotopes. But back in June, the U.S. announced steps to ensure the supply of medical isotopes, while minimizing the use of highly enriched uranium (HEU). In the same press release, the U.S. government specifically mentioned Mo-99 and said that it is accelerating commercial projects that produce Mo-99 without the use of HEU.

    Basically, the U.S. is saying that it realizes the need for supply and will move forward with projects as long as the medical isotopes can be produced while minimizing HEU.

    HEU is a very dangerous substance, a material slated to be secured under the President’s four-year lock-down agenda. Thankfully, in addition to Advanced Medical Isotope’s relationship with MURR, it also has its own technology in which Mo-99 can be produced with a single electron, therefore consists of Low Enriched Uranium (LEU). With that being said, it looks as though Advanced Medical Isotope has everything in its favor, and at this point it is simply a waiting game for the NRU reactor to close, which should be very soon.

    Once the NRU reactor closes, Nordion will lose most of its $80 million in last year’s revenue from its medical isotope business. As a result it has lost 35% of its value in the last three months, since announcing that Canada would not be reconstructing its last hope at salvaging its medical isotope segment, the MAPLE facilities. Advanced Medical Isotope could earn $50-$60 million of that revenue, with the production of Mo-99 alone. The company’s current market cap is $15 million; therefore if you consider a price/sales ratio of 4.0, Advanced Medical Isotope could reach a market cap of $200 million, or $2.60 in the next three years.

0.00180.0000(0.00%)Oct 10 3:29 PMEDT