RE:RE:RE:RE:RE:RE:RE:RE:This one is HUGEI am sure this group is relatively surprised by the lack of significant sp movement on the FDA approval news, but there is no need for concern. One explanation would be the traditional 'self the news' rule, and many did sell from over 1.80 down, to take a reasonable profit in very uncertain markets. Not breaking through $2 is a bit of a surprise, but some might be concerned about a financing being done if TOS goes it alone and needs to raise $10 - 20 million to get enough cash for restarting and expanding their facilities over the short term. Over the medium term, they will be making enough cash flow to self finance. I don't, however, think that TOS will have any need to go to the market for cash and thereby dilute existing shareholder value: they can go to the bank, with excellent interest terms on excellent future prospects and solid ability to repay any short term debt. They have cash in the bank, now, and no debt. (I will loan them some, if they like, too, though they won't need it! :)) ) Some buyers are possibly also waiting to see the papers and labelling on the FDA site, too, before realizing the value, here.
Regarding the technology, as has been outlined in the past, the strategic decisions were to make an H2O2 sterizer supplimented with ozone and a new process (patent pending) for purging the unit more efficiently and more quickly. As a surgeon, I understand that turnover time is extremely important in an operating room, as more cases are done in a day more quickly with minimally invasive surgery using the scopes and intruments that require cold sterilization. This new VP4 unit, and the new smaller unit (the next submission to FDA based on the predicate Sterizone VP4) that can be placed next to the OR suite, will process intruments more efficiently and cost effectively than any other product on the market. There were compatibility issues and very long cycle times with the ozone only sterilizer in the past, but, we have been told, compatibility issues are resolved, as H2O2 is now the main sterilant and cycles are much much faster.
The company is obviously holding its cards close to its chest and Rumble is not going to discuss any channel partner details until he has the deal that he wants and is in the best interest of shareholders, and his 1.5 million options outstanding.
This company is worth over the $4-5 range at 15% discount rate.
I don't believe the general stock market knows this story as it is in a very specialized field. It was never in 3M or other possible acquirer's interests, either, to have the story out there, as they would rather buy the company for $3 or 4 than $6 or 8. But, as the story gets out, the TOS sp will continue to move up. It will be very interesting to see other analyst evaluations in coming days creating more visibility, even over the holiday period, but this company is still very much a buy, for a double or more over the coming months, IMHO.
Again, have a wonderful holiday season, and all the best in the New Year
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