Short Report has Some Merit While I appreciate most of the positive posts about TOS here, there is overoptimism and a neglect of the merits of the Short Report. As an investor, I'd like to stay grounded and highlight a few:
- Lack of Transparency in Placements: This is the most important number for any investor. The business model depends on this for consumable revenues and getting a sense of the client base. All we get in conference calls is Ric Rumble saying there is growing demand and how good the technology is. This is still a show-me story. For all we know, a large % of the VP4's shipped to Getinge are still lulling in distribution centres as a result of minimmum purchase requirements. Placement numbers should be demanded aggressively by shareholders, especially post attack from shorters.
- Management is not aligned with Shareholders: While Ric Rumble's 22,000 share purchase is a nod in the right direction, it really is insigifcant. Bottom line is that there is still no tangible skin in the game.
- Employee Turnover is a concern for a small company where human capital is critical. Ric Rumble alluded to this truth in the conference call.
- Getinge is mired with problems & J&J are well-established competitors: This is a relationship business and a sales story moving forward. Clawing market share from competitors is not simply a function of a superior product.
- The Touch Screen is Outdated: The screen gives off a 1980's feel to the operations of the VP4. Clients want to feel like they are modernizing and paying an equivalent price tag is challenging for looks that are outdated.
I welcome any thoughts.