Anybody follow this one ?

Mediwatch mentioned in Shares Magazine this week.

Mediwatch chiefs scan for US profits
The likely prospect of a lucrative US distribution deal is good news for investors in AIM-listed Mediwatch (MDW).

Following publication of the interims, chief executive Philip Stimpson bought 125,000 shares and finance director Kevin Middis acquired 60,000 shares at 8.03p.

The company produces a bladder scanner which has recently received marketing approval from the FDA. This diagnostic kit can be used by a trained person, who need not be a doctor, to discover whether a patient needs specialist secondary care. It will be used in primary healthcare to screen for prostate illnesses.

Currently, the group has distribution agreements with CR Bard, one of the worlds largest suppliers of urological equipment, for distribution in parts of Europe. It is hoping to extend these arrangements to include Canada, Germany, Italy and Spain. It has signed similar distribution arrangements with a GE subsidiary to cover Japan and South-East Asia and is in the final stages of discussions about a distribution arrangement in the US an announcement is, we believe, imminent. Although currently most of the groups sales are in the UK, the company believes that in 2004/05, most will be generated overseas.

Last year, the company had to place 10 million shares at 2.5p and then seven million at 3.4p. Now that it has received FDA approval, the markets enthusiasm should continue to grow, especially when it is able to name its US partner. In the medium term, it is possible that its technology will attract a predator.

added at the very end of the day, thats around 35% up in 2 days. Far more to come me thinks.

cheers GF.

This was taken from another board, if true then very interesting.

Institute report - This company (MDW) is involved with a study that will inform future policy on screening for prostate cancer into a national programme. The study will take many years BUT results as they appear will be acted on earlier than the completed study. The bladder is the most likely area to develop cancer caused by radiation from X-rays ( The Lancet 2004) and ways to aviod this by new types of machinary is crucial. Any new ways to manage men with screen - detection of this disease will be supported by large sums of money.

up by 7% today ..how far can this go ..holding tight

Dont think we have seen anything until the distribution deal is announced.

cheers GF.

Up again guys thats over 40% in three days. Still more to come though a lot more.

cheers GF.

Fingers crossed hope to be hearing about this distribution deal soon.

cheers GF.

OK - I'm in as of tomorrow for a few.

An interesting post from elsewhere a couple of days ago helps to put the fundamentals into perspective, during this frantic climb:

"Estimated annual turnover in US alone of $20m. Plus signing new distrubution deals for new products to other countries - news that will be coming in the same RNS. So add 50% for other turnover worldwide and thats $30m turnover. Say thats approx 17m (sterling) turnover potential for 04/05. Mkt cap of growth companies typically three times sales (its a far better guide than PE ratios for this sort of high growth stock). So that three times sales = fair value mkt cap of 3 x 17m = 51m mkt cap is fair value. Its now at a tiddly mkt cap of 10m ish !!! Multiple from here of 5 times the share price = genuine fair value mkt cap.

Plus : The bladder scanner is getting distrubuted worldwide in the same RNS so my annual turnover estimate of $30m only adds in $10m from outside the US, which is very conservative."

Overgrowth - I read that post too and posted it on GF's thread - do you know enough about MDW and enough about calculating the sums in this to know if the above is accurate or just one person's very optimistic view?

Very strong looking TA.


Positive Candidate (Medium term) - Feb 11, 2004
Has risen 555% since the bottom on 5 Jan 2004 at 2.25. An approximate horizontal trend is broken up. A continued strong development is indicated, and the stock now meets support on possible reactions down towards the trend lines. RSI is overbought. The stock can still rise further, and we should see a decreasing RSI before this is used as a negative signal. Positive volume balance, i.e. high volume in days of rising prices and low volume in days of falling prices, strengthens the stock in the short term. The stock has support at p 3.50. High risk with an average difference between the lowest and the highest price of the month of 46%.


cheers Gf.

it seemed more seller rather than buyer now. can you confirmed.

No problems I added again on the weakness this afternoon, and see these making me a very decent return.

cheers Gf.

I agree with GF, I formerly had a stake in PRO, however they are still waiting for FDA approval with their product and there are mixed messages about distributor arrangements and competition and a host of other worries.

In contrast, MDW have the approval and distribution deals have been set up all over the globe - only the US to go and the news will be imminent.

I'm still mulling over the fundamentals in the view I posted earlier, though couldn't resist today's dip as the perfect opportunity to buy in at a decent price.

It's suspected that the MMs dropped the price a bit too low today and attracted more buyers than they expected in their tree shake - so a high mark up is predicted tomorrow. Not that I'm particularly fussed about the short term antics of this one - I've bought in for serious profits and am prepared to wait for them.

OG

Agree with you overgrowth and have just topped up again, not many but money from some divis. See this as a great 2004 growth story.

cheers GF.

Talk on another site that the distribution deal maybe out monday or tuesday.

Im hoping so.

cheers GF.

Freed some funds up and added even more.

cheers Gf.

Sounds like an interesting week coming up!

Interesting e-mail lifted from another board..........

"Thank you for recent email.
I am sure you will appreciate we are unable to be specific as to when the anticipated agreement for the distribution of the Company's bladder scanner will be concluded. You are aware of what was stated in the announcement of the Interim Results and, unfortunately, we cannot be more forthcoming at this stage. Suffice to say, the discussions are ongoing and we hope to be able to announce something in the near future."

cheers GF.

For those that didn't see it - SHARES magazine, from one week ago covered the full story, director buying and FDA approval and talked about the crucial US distribution deal - adding that "We believe an announcement is imminent" - those were the exact words used.


cheers gf.

Going up nicely again.

gf.