Anybody follow this one ?

Record volume today for this stock with some very heavy buying reported.

LONDON (AFX) - Shares in Mediwatch continued to respond to recent news that
the company has gleaned marketing approval from the US Food and Drug
Administration (FDA) for the Portascan portable bladder scanner in the US.
The state-of-the-art portable diagnostic will be used to screen patients
suffering from prostate and bladder disorders, incontinence and those requiring
catheterization.
The group, whose shares were 3.00 pence higher at 10.87 by 8.30 am, is in
advanced stages to conclude a distribution agreement with a large,
well-established international company that is already selling into closely
related markets.

I am holding now for an early target of 20-25p which WILL happen on the announcement for the distribution agreement, tomorrow or early next week is my guess.

The FDA approval will be the catalyst for major announcement re US distribution deal: it is overdue. How high it goes thereafter is intriguing - I will suggest that we will see MDW over 25p short term and much higher long term.

Having originally bought in at 24p I've had a long wait, however also bought in at 3p so may break even/make profit soon. Fingers crossed!

Delayed BUYS at 10.75 pence are coming through at the moment from an hour ago. Normal Market Size is only 3,000 so trades roughly over 18,000 shares are delayed in reporting by an hour.

Delayed buys at 11 pence starting to come through.

100,000 BUY just been reported at 11 pence.

A superb, ground breaking medical product, has gained FDA approval for the huge USA market and the market capitalisation of this share is still only 6m at the start of play today !

Baring in mind the size of the market that Mediwatch is now about to dominate, it puts the shares on a very, very cheap valuation as they stand today.

They look very good for significant price MULIPLICATION for some time yet :

As a comparison, ZI Medical had a mediocre product released to the small UK market which it admitted it was "unsure of how much it would conribute to revenues". Yet the price has gone from 4p to in excess of 30p in about two weeks. Mediwatch stated expected revenue PER YEAR of $20m from the US alone.

It values ZI Medical at a mkt cap of 28m yet we are at a tiddly 6m mkt cap with a far greater product and far greater earnings visbility, and a far greater expected earnings amount. Therefore, Mediwatch shares are still undervalued by at least a MULIPLE of 3. A market cap of 30m would be a very conservative estimate of what Mediwatch should be on, and probably 50m is what Mediwatch deserves at this stage. Yet its valued at 6m !

That gives us a realistic price muliplication of 8 x 6m = 48m mkt cap. So 8 x 11p (share price) = 88p before it looks fully valued.

A MULIPLE OF 8 TIMES THE EXISTING SARE PRICE IS REALISTIC when compared to other firms who trade on 4/5 times next years full year revenues (if its a growth company and Mediwatch certainly is).

PLUS TWO FACTORS TO LOOK FORWARD TO :

- Mediwatch in advanced talks with a major and significant US distributor company for its product. As confirmed on the AFX statement out today. So a nice big RNS announcement is due within weeks.

- Press coverage. As yet it hasn't had much - but Investors Chronicle is out tommorrow and may cover the FDA announcement that came out from Mediwatch on Tuesday. If its not in this weeks Investors Chron (as too late to appear in thsi weeks edition) its sure to make next weeks.
Good pubilicity.

Plenty to look forward to - not least a more realistic mkt cap valuation. 6m is just way, way undervalued, and simultaneously, so is the share price.

Review of the six months ended 31st October 2003

Outlook

Much has been achieved in the recent past leading to a positive perspective of
the future. FDA approval of the portable scanner and the possibility of entering
the US market, the setting up of an international distribution network and
improvements to the UK selling organisation, together with the enhancements to
the existing product range, are all significant and reassuring achievements
pointing to higher sales levels in the future. In addition, the progress made in
Mediwatch Biomedical Limited provides confidence in the long term prospects for
the Group.

Full review

http://www.uk-wire.com/cgi-bin/articles/200401280700167076U.html

RNS Number:7607U
Mediwatch PLC
29 January 2004


Mediwatch plc ('Mediwatch' or 'the Company')

Directors' Shareholdings


Rugby, UK. 29 January 2004 ... The Company received notification today that
Philip Stimpson, Chief Executive Officer of the Company, bought 125,000
ordinary shares in the Company at a price of 8.03 pence each on 28 January 2004.
Mr Stimpson now has a beneficial interest in 15,125,000 shares in the Company
representing 18.44 per cent of the issued share capital of that class.

The Company received notification today that Kevin Middis, Finance Director,
bought 60,000 ordinary shares in the Company at a price of 8.03 pence each on 28
January 2004.

The Company received notification today that Omer Karim, Non-Executive Medical
Research Director, bought 475,000 ordinary shares in the Company at a price of
8.03 pence each on 28 January 2004. Mr Karim now has a beneficial interest in
3,033,600 shares in the Company representing 3.70 per cent of the issued share
capital of that class.

Ends




For more information, visit the company's website www.mediwatch.com or contact:



Yvonne Alexander De Facto +44 20 7496 3316
y.alexander@defacto.com



Philip Stimpson Mediwatch +44 788 547 888
philip.stimpson@mediwatch.com





Except for the historical information presented, certain matters discussed in
this statement are forward looking statements that are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from results, performance or achievements expressed or implied by such
statements. These risks and uncertainties may be associated with product
discovery and development, including statements regarding the company's clinical
development programmes, the expected timing of clinical trials and regulatory
filings. Such statements are based on management's current expectations, but
actual results may differ materially.




This information is provided by RNS
The company news service from the London Stock Exchange
END

Price 9.0-9.5 pence, rising nicely, up 17.4%.

Could be worth adding more at these prices. The distribution deal should be imminent.

In addition, good volume so far today. Trades over 15,000 shares are delayed by an hour. So the majority of earlier larger buys have appeared in the sell column.

is it still worth to buy it now? any furhter new will be announce?

A distribution deal is due sometime soon. Price seems to have found a new trading range at the moment with limited downside.

so when will be good to buy?

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.