Mediwatch is a small company destined to become a much bigger fish by the time this year is out. Mediwatch are already a market leader in urological medical diagnostics equipement and are currently exporting their products throughout the UK, Canada, Europe, India and Japan. That doesn't leave much of the globe left for them to capture - until you remember the good ol' US and China. These are the two massive markets which are destined to be added to MDW's export client portfolio by the end of 2005.

Website: www.mediwatch.com

The company is currently heavily undervalued. This is probably because Mediwatch's speciality is not a very glamourous business to be in as their equipment is used extensively to diagnose prostate cancer in men and other nasty urological conditions affecting both men and women. However, don't let that put you off investing in these guys. This is big business and is growing at an exponential rate as more and more people globally become health-aware as they get older. Mediwatch normally supply their products through to global markets via distribution agreements. They already have the best of distribution partners in the well known US medical distributor CR Bard who supply Canada and Europe and GE Medical who supply Japan. The UK business is handled by Mediwatch's own dedicated sales team. US FDA approval was gained for MDW's products at the start of last year, however a whole year of US legal wrangling meant that they were unable to seek a suitable partner for the crucial distribution agreement until the start of this year. This distribution agreement is expected by the board to have a "significant effect" on the share price so they are reluctant to give any clues as to when it will be signed, sealed and delivered. The general consensus is that this US distribution agreement will be announced in July/August. In China and Hong Kong, MDW have done things the other way round. They have set up distribution agreements with major Asian medical equipment distributors and have stock already out there waiting to sell into the markets - all they are waiting for is SDA approval (which is a "rubber stamp") from the Chinese authorities - this can take anything up to 12 months to come through and MDW applied during Autumn 2004 - so even more good news coming soon this year. Epidemiological data from British Association of Urology conference last year: On average 30-45% of all men between the age of 50 and 70 have at least one PSA test per year in the US / Italy / Australia. If that's not enough to convince you to invest a few hard earned coppers in MDW, they are also developing a PSA stick test product (PSAWatch) which is revolutionary and causing some excitement in medical circles. This product can also be adapted (at very low cost) for a whole spectrum of medical disciplines from Cardiology to Veterinary Practice! This product is likely to be released in the next few weeks. Philip Stimpson the CEO has said that this product is going to be their "gold mine" - I'm sure it will prove to be ours too.

Have another glass of Sheridan's and all will become clear lol!

Apologies about the golf Pete, as I suspected I am away that day, in France.
On the SEO thread we are all meeting up when it reaches 50p, in Donny of all places!! Any takers on MDW and at what price?

Hi folk! So this is where you are all hanging out - not telling your 'friends' either! Any way, I'll bring along my dog and he'll sort you out! Thought I'd check it out to see why MDW even outdid SEO this week. Excellent header which I would expect from og. The US could make a lot of difference because what put me off last time I looked was the the machinations of the NHS. Too small for a CFD and don't know how I can ease cash out of my stocks which are in the smaller high-spread stocks. Just built up CFP on advance of the AGM on Wednesday so will see what happens then.

Don't think SEO is a good comparison. SEO is already at 250m cap. whereas MDW is less than 9m. The unique characteristic of SEO is the royalties structure. Don't think there is anything comparable here, is there? I'm not quarrelling with the potential to go to, say, a cap. of 30m or even 50m; easier to take that jump than multiply from there.

Suspect andysmith is out of his depth here and should stick to packaging! Could end up prostrate! Mind, I don't think Mrs Malaprop had a husband, pth.

Eric

Hi Eric - good to see you here.

The difference here is that MDW already have 50%+ of the globe in the bag and are making ever increasing sales (as people globally become more health conscious in proportion to their relative wealth) in their existing export markets.

The biggest market for health products is the US - that's why the US distribution deal is so sensitive. However, I believe that longer term, China is going to become massive - check out the lastest health reports, apart from obviously having a huge population, the Chinese are getting richer by the minute because of the massive growth which continues unrestrained and horror of horrors they're moving away from traditional medicine with the confidence in Western techniques that extra income evidently provides.

CFP are going great guns and I too have a very large stake in them, however if I had a choice I would go with MDW purely because of the newsflow which we know is going to come though this year (just that we don't know when...sounds more like SEO all the time lol!).

In my view Mediwatch is going to be the next SEO (and much better), the speed at which the share price increases after news of the US deal will leave you truly breathless - purely down to market cap. and forecast profits - check them out in more detail if you don't believe me.

SEO, CFP and MDW are going to make us all very rich from what I can see at the moment...

Cheers

OG

Put out an SOS for my dog SD to do a snifty on this one. What happens, for instance, when they have penetrated their markets? what follow up revenue is achievable? By the way, ASOS should be having a second coming, retracing the path of last year and then pressing ahead. Never did like the trinity idea as it really needs to be a quaternity!

Eric

Eric - here's a starter for 10 from the Wall Street Transcript no less - from a couple of years back admittedly, though it shows that the longer term strategy is now being put into action:

"TWST: Can we set the context with an update on MediWatch (London: MDW.L) since we last spoke?

Mr: Stimpson: Weve finalized the development of two products and successfully gained some significant orders out of an American corporation, albeit the UK division, which we start to full time manufacture later this year. One product is a bladder scanner and the other one is a portable uroflow system, and were hoping for a large order on that the third quarter of next year. On the PSA, which is the point of care system which weve been developing, were now a year into development and we are getting very close to hopefully having the product ready by the fourth quarter of next year. So there has been a lot of progress and a lot of the money put into research development which is now coming to fruition.

TWST: Whats your assessment of market opportunities for your products?

Stimpson: The market size as you know is quite considerable for prostate assessment, which is where we are focusing initially with our [designer] products. We still have of course the one-stop prostate assessment system, which culminates the use of software, ultrasound and electronics, and the biochemistry. We combine these four technologies to give us One Stop system which generates an A4 page report to speed up the diagnosis and help reduce healthcare costs. So should you go into a GPs clinic, you can have a complete assessment within fifteen to twenty minutes. Part of that assessment is the development of a PSA test, which is a finger-prick of blood complete quantitative point of care system. The results will automatically be transferred via a radio signal down into the software giving us considerable advantage. Nobody has done that at the moment quantitatively. So were ahead of the marketplace with regards to that development in particular. Nobody else has come up with a one-stop system either. Were ahead on that and were repackaging that for the European market and the American market in particular. We hope to have that ready circa end of second quarter of next year with FDA approval we should be getting with that. As part of that development, we have developed the portable bladder scanner and the portable uroflow system particularly aimed at the primary care and GP market.

TWST: Are you looking at any other geographic markets?

Stimpson: Were going into China. Weve already been there visiting and evaluating that market. Were in discussions with two or three Japanese companies with which we feel were going to get a joint venture with one in particular with marketing and another one with regard to a development program with the point of care system.

TWST: Is that the preferred way forward into new markets?

Stimpson: We feel that its the quickest way into difficult markets like the Japanese and certainly the Chinese markets, yes.

TWST: Can you summarize the overall goals and objectives youd reasonably expect to accomplish in the next twelve to twenty-four months?

Stimpson: We would like overseas distribution to be in a minimum of one hundred different countries and that would include the big countries like all of Europe, the American and Canadian market. We should then be moving into Japan and also Asia. Were talking to a major American company that wants to represent us out there. That would take us into China at the same time

TWST: What are the advantages that you bring to the table?

Stimpson: Our strengths are in our innovation and technology, I think. We are a small company that can act very fast. We have some first class scientists and engineers on board that have enabled us to develop systems in a shorter space of time. For instance, from cradle to actually getting the bladder scanner launched was only about fourteen months. And the point of care system, although weve been doing a fair bit of preliminary work over the last two years with the PSA, weve really finished off the diagnostic platform in twelve months and are now working on integrating it into a reader system that will be ready in the 4th quarter of 2003. The whole development has taken 24 months which is much faster than other companies which take upwards of three to four years to do similar development."

The follow up revenue will all come from the product which is rolling off the development line now - they don't need to spend much to change the machines to produce products which can be applied to all disciplines (not just urology) - the profit potential is endless and MDW have already seen that that they can make big headway into totally unrelated disciplines. They are working on the next development which will ensure that production is fully geared up to allow seamless swtiching between products.

With SEO customers need to eat - with MDW customers need to live, says it all really...

Cheers OG-great stuff xxx MP

Eric, totally out of my depth in healthcare apart from recognising the market potential of Mediwatch. I was drawn to this by the folk on this thread and the excellent work by OG PLUS it is my one "emotional" stock in my portfolio for personal reasons. I too think SEO will eclipse MDW but MDW has at least 5 bagger potential and you know I like my smallcaps with potential. Risky but more fun than FTSE100.

Andy

Mrs Malaprop was the invention of the playwrite / author Sheridan in the play The Rivals and became famous for the misapplication of words. So famous in fact that Malapropism is now in the dictionary. Just thought I would marry you off!!

Have a good weekend.

PTH

Interesting that quite a few of the same players are in the same stocks. SEO/CFP/MDW etc, although no great surprise.

English Lit was never my strong point, neither was typing!!!
Are you in on MDW as well Pete? Having built up my SEO mostly at <6p I need to see figures to actual deals before adding as I am overweight on SEO. Still think easily 100p but that makes only 3.5 bagger this year from here which makes MDW currently more attractive to me with new funds. I'm doing that now because if any US deal for SEO is massive and beyond even my expectations I will be adding even if in excess of 30p.

Andy

Have had MDW since March last year at 11.5p. Always appeared to be a company with great prospects, but it's taken over a year for anything significant to happen. Could have sold at a small loss in Feb, but due to being away didn't notice the rise. Anyway, might be quite pleased I didn't now, increased my stake last week and have averaged down to 9.5p. Hopefully into profit soon!

Pete

Nice one, I believe MDW has a great future and agree with OG, when the deal comes this will fly, you just have to look at the rise in the last week on nothing but small buying pressure as it had been over-sold. I thought 6.5p was the bottom but did nowt about it before I went away on business. Still learning!! (ps, no English errors today mon amie!!)

Andy,

You sure that's how you spell 'mon amie'?

Just sent you an internal email, don't know if it works over the weekend, I would assume so.

Pete

Andy, download the Google toolbar, it has a spellchecker on it. Good for when you are doing important stuff. Not important on here really, it's good to have a laugh...we all make em :-)

The company recieved a 1m order from Bard a part of a 5 yr agreement to supply its portable bladder scanners and has settled legal issues regarding distribution issues in the states. Year ends 30th april prelim results begining of July. (from Co REFS )

Cheers Seadog - Co. REFS as succinct as ever have picked out the key news from the year.

Legal issues for US distribution were announced as resolved on December 8th 2004 - so that all important deal can't be too far away now. That particular release included the comments:

"Said Mediwatch CEO Philip Stimpson: " We believe that our products are the best
in the sector, providing clinicians with innovation, quality and value.

" Moving into the USA will enable Mediwatch to compete for business in one of
the biggest health care markets in the world."

With increasing life expectancy and an ageing population, prostate and
urological conditions are among the fastest growing health problems encountered
by doctors today."

The equipment order from CR Bard was announced on 27th October 2004:

"Said Mediwatch CEO Philip Stimpson: " The technology we provide is increasingly
being recognised as some of the best in the business."

"This order demonstrates Mediwatch's ability to supply clinicians with the
latest, innovative, diagnostic solutions, harnessing technology to provide
patients with better medical care"".

Also announced last year:

1) The distribution agreements enabling MDW to sell into China and Hong Kong with the companies Physiotec Electronics Ltd and Tronda Electronics.

2) SonoSite Inc's unit, SonoSite Ltd to distribute the MDW's hand-carried ultrasound systems for the UK urology market and SonoSite will supply Mediwatch with its TITAN ultrasound technology to be incorporated into Mediwatch's proprietary 'One Stop' Prostate Assessment System, which is currently under development.

There's plenty going on at Mediwatch and as we will see as this year progresses, there is plenty more to come also.

og,that top graph looked great last week,don't like the look of it now though....too dramatic!

Banjomick, no problem with the chart, steep rise put the RSI into the overbought area, MACD still going in the right direction. Now as to the Stochastic I could never get the gist of that one, although I have tried :-)
After this slight setback lets look for the next up move to take us back above 8.5p to continue the up trend.
opto

optomistic,have no problem with mdw.It's the top chart (not graph-lol)just makes me smile with the max/min limits that's all.
Must admit,I was a bit suprised when it dropped below 8.5 a couple of months ago,but there you ago.More positive news required.

Guys - I believe that consolidation at this point is a good thing.

It's true as banjomick says that news is required to really start lift-off, though I'm happy right now that the price isn't rising and rising without news because huge upward trends have a nasty habit of spiking and coming back down to where they started.