RE:Lack of NewsYour comments and questions are excellent, IMHO. And, I look forward to you, others, and I asking Rumble and his team at the upcoming cc for clarification on exactly these points, and that clarity is given! I hope you find my comments useful on some of your topics.
Since communication to SH is lacking, I thought why not speculate (and play devil's advocate) on why Q3/Q4 to date has gone by without any update on my list: I'm sure i'll get some negative comments, but with RR confirming during Q2 CC that so many irons are in the fire, why the lack of news to shareholders and the need to analyze the TSO3 website careers section for "heads being hired" and "boots on the ground" in Quebec to provide parking lot #'s? Not looking to start conspiracy theories, as i'm well aware they add no value. What adds value are facts...preferably supplied by the growing company.
1. Update on Olympus device compatibility (Results are surely known. Olympus lawyers told RR not to deciminate info so they can get a "plan" together?) OR results are known and there is a problem? There is no problem with the ability of the VP4 to sterilize the Olympus Q180V, and TSO3 has Canadian and European approval in this regard. And, following the Chicago Med program on TV this week, the topic is even more pressing for the FDA, scope manufacturers, the public, physicians, hospitals, and the lawyers for the aforementioned! As I have stated previously, my educated guess is that the FDA, seeing how this claim will continue to resoundlingly endorse the VP4 and grant TSO3 a virtual future monopoly in the low temperature space regarding these and other complex scopes, is modifying or has modified some of their testing protocols and data collection and reporting parameters in order to be as certain as they can be that the VP4 solution to this problem is iron clad (as it is), reliable, and beyond legal reproach. This is another game changer for TOS and the FDA and it will disrupt the low temperature industry. The FDA will not go about this quickly, despite the public outcry. They and TSO3 want everyone's ducks in a row before news comes out. Be patient.
2. Prestigious Hospital placement/Current Customers (placements likely made, but Gentinge does not want info known for competitive reasons) OR sales traction is being delayed by Hospital purchasing depts? These are no doubt being pursued and will be announced in good time, but you must be aware of the scale here: for big institutions that are leaders in their fields, (such as Mayo Clinics, Mass General, Johns Hopkins or dozens of others...) not to mention GI freestanding suites or off site sterilization centres such as Steripro, the volume of scopes and cycles that they could put through is not just 10 per day, but easily 10 - 30 x that number and involves acquiring far more than just one or two VP4's. And, the number of Steris and Sterrad units that they will need to be retiring and replacing is staggering, (with a lot of purchasing managers having to reluctantly admit that spending $500,000 on 3 or 4 now +- obsolete competitors' units over the past couple of years was a mistake??... and now you want to spend another $600,000 on 4 new state of the art sterilizers?). So, they will make their acquistions slowly, according to budget constraints, and according to the pressure applied to them internally and externally to provide the best sterilization services in the world and maintain or affirm their place as leaders in the quality of their services.
3. Double door machine (should have at least seen some marketing material on this from TOS/Gentinge given launch in europe set for late Q4/early Q1-17. Likely a Gentinge issue since their mgmt house is not in order?
4. European Launch (see above)
5. Enhanced cycle efficiency on current installed machines (again, a competitive item that Gentinge may not want public (this is only a huge positive for TSO3 in proving their efficiency and cost effectiveness!)- also seems to be a delay on the Cdn journal of infection control article that was supposed to be out last week? Again - RR/gentinge may be delaying this? The article should be out in a day or two - according to the publisher, it is 'in the mail'.
6. Further FDA claims (Is there a submission pending, or is FDA just breaking new ground with our application? SEE ABOVE- Also, medical-legal consequences of their approvals/actions) Political with election yr?
7. 80L development (likely a 2017 event due to bandwidth of mgmt team) Rumble has stated he wants this to market by January 1, 2017.
8. Manufacturing capacity/Capital Planning (dependent on sales to date & forecast which we have really yet to get a handle on) no need for more capacity if hospitals delaying their purchase decisions? Although "heads" continue to be hired in Quebec/Myrtle Bch. All in good time. Don't expect much out of this or next quarter in terms of numbers, IMHO... we are just approaching 'exit velocity'.
9. US Listing/US Investor base (many on this board have said US investors are gaining interest, but TOS does not need capital at this pt making it difficult to meet criteria for US investors therefore don't need a US listing right now) Agree: listing would be great for exposure and liquidity, but not presently needed.
10. Global reach (Asia, Australia, etc) (Apparently being worked on - Echo eluded to a conference in Australia that TOS is attending, however no news to confirm) Rumble and others will be attending the annual world sterilization meeting in Melbourne next week and presentations will be made as well as, I expect, having a VP4 at the Getinge booth, where it will again be 'the bell of the ball'. I would expect this will mean the cc won't be until start of the week of November 7 (before the US election) or at the end of the previous week at the earliest as management will probably need to have board meetings, etc. following return from Australia in first week November. Just my hunch.
11. Q3 Results (provide clean look at full Q of production/inventory, ramp in sales) (1st wk of Nov)
12. A TSO3 purchase of a synergistic company (could this be why its so quiet - focus is else where?) Too many other things going on to think about this for now, would be my guess.
13. A buyout by Gentinge, JJ, 3M, Olympus, Private Equity (same, could be preliminary talks going on and mgmt team is consumed and not worried about items 1 through 12 right now?) (The longer we remain independent, the better value existing shareholders will see in terms of improving valuations... TOS continues to get little respect and present valuations are ridiculous.)
I welcome your feedback to the above.
:) WKH