Hi all
pretty new to all this. I have pumped some into Deltex - looks like a strong product with good growth. Could be a steady gainer.
Does anyone else have this, and anyone have some research on it? Someone with more experience than me!
thanks in advance.
Grajul

Invitation to visit Chichester facility: Tuesday 25 November 2008

Unable to attend myself, but no doubt someone on here will attend and we will see some feedback in a few weeks.

I won't be there either, but a good opportunity for management to encourage visitors to insist on the use of Cardio Q etc, when having operations.
2517

Deltex Medical Group
Share Price; 9.88 p
Market Cap; 9.9m
(DEMG.L)
NB Higher risk as pre-profitability

There is only one technology of choice
If you, as does the author of this comment, consider that the guided fluid management in patients undergoing surgery will become a 'Standard of Care', there is only, at present, one (trial) proven technology in the operating theatre (OT). That is the Group's Oesophageal Doppler Monitor (ODM). As far as the author is aware, no other technology has been (trial) proven to give positive results in the OT. There may be in the future, as LiDCO (London AIM: LID), another UK company, has launched LiDCOrapid for use in the OT, but as it has only recently been launched there is (obviously) not yet any clinical data.

Result of Spanish Trials
At the Congreso Nacional de Cirugia in Madrid, Dr Ramirez, the lead colorectal surgeon from Hospital General Universitario Zaragoza, reported the first findings of the eleven hospitals to have collated data on the impact of introducing CardioQ-ODM as part of an enhanced recovery programme in colorectal surgery. The result were that the average (mean) length of stay had been reduced to six days per patient, whereas previously they had stayed in hospital for twelve days. The results of the audit are being studied by representatives of the Entralgo Agency, which makes recommendations to the Spanish healthcare system about the clinical and cost effectiveness of medical innovations. A previous draft health technology assessment by this Agency indicated that using the CardioQ-ODM would save EUR900 per patient, reduce mortality rates and significantly reduce complications: the draft conclusions, although contingent on outcomes from the above audit, were already assessed as "robust".

Andy Hill, DEMG chief executive, made the following comment with which we are in full agreement.
"These results confirm that we have created a major opportunity to establish a very large, high quality business in Spain. The country's leading surgeons are recommending new packages of care with ODM as the key single innovation and they are already looking beyond colorectal surgery to other types of major surgery. The Spanish government agencies that determine funding priorities have been involved throughout the audit and should now be able to finalise their positive draft health technology assessment and recommend ODM as a standard of care."

Conclusion
We consider that the (not unexpected) results from Spain will lead to major adoption in that country and is further verification of the results of using the ODM. There appears to be a groundswell of opinion that the use of the ODM is by far the most accurate method of managing patients. We, therefore, consider that Deltex is the company of choice for investors wishing to be involved in this technology. Although the market is huge, current market penetration is very low. But the catalysts for widespread adoption now look to be in place. We reiterate our Buy opinion especially given the recent weakness in the share price. We still see the share price multiplying over the medium term and the current market capitalisation is both very small in relation to its potential and its peer group given its better technology and higher growth rate.

Barack Obama has stated that one of his priorities is to reduce the cost of health care in the USA. He wants to cut waste and the cost of all procedures where possible. This will obviously have adverse effects on several arms of health care whilst giving an opportunity for others to increase business/profits.
Drug companies, private hospitals and possibly private health insurance funding, via insurance premiums could suffer.
Deltex could be one of the big winner, especially when/if pressure is put on heath care providers and health insurance companies to lower pricers.
Lets just hope that this is another lever which Deltex can use to open doors.

Barclay's bought almost 5m shares last week.
2517

And their holdings have increased from 35,000 to 5,014,663
Previous holding % Below notifiable % to 5%.

Hopefully we will see more institutions buying, after the invitation to visit Deltex's Chichester facility on Tuesday 25 November 2008, as no doubt those with significant holdings such as institutions will attend.

Ridiculous Spread.

No one is going to top up at this spread. Perhaps that is the idea. Another institution lurking to get in or increase.

Since arriving recently in Greenville, South Carolina , Deltex Medical has announced plans for expansion.
This is according to the states council on competitiveness........

Comment/Conclusion.....So if they are looking this quickly to expand they must have customers knocking at the door. As we know one of the main things that would hold Deltex back if/when there is a decent increase in orders, is their capacity to supply.
So they are obviously gearing up to do just that. Looking very good indeed (again).

And yet another positive RNS.

Australian doctors publish positive meta-analysis on CardioQ-ODM

How many more are needed before star ship Deltex takes to orbit.

If I was a member of Deltex's management, I would have torn all my hair out and bitten my nails down to the wick by now. It must be so frustrating for them.

SP up 11.11% with a spread of almost 10%. Have seen similar SP increases and spreads before, but not together for some considerable time.
Not normal!

SP now up 13.89% WITH a still increasing spread.
My thoughts are that the open day has already seen some institutional investors sneaking out (ops forgot we have mobile phones nowadays) and contacting their brokers requesting batches of shares. That could be why the SP has increased by so much today, with that widening spread. The market wants your shares, but scares you of buying more as they want to fill orders already in and waiting.
Late trades/closed trades will make interested viewing.

Taken from another site with permission of poster... RAConnell.

Meeting Feedback.

Yesterday's meeting with about 20 visitors was better attended than the previous SupraQ meeting in London just under 2 years ago. Attendees seemed to comprise private investors, medics, journalists (Investing for Growth (IFG), a subscription service that rec'd DEMG this summer) and analysts.

The meeting covered 3 areas:
- Updated CardioQ monitor - now entitled CardioQ-ODM.
- R&D
- Manufacture

CardioQ-ODM
The new monitor has more modern, compact component concstruction, additional outputs, is 1Kg lighter, has better screen and comes with a more flexible probe. The (non-invasive) SupraQ has an improved probe that simplifies its use and overcomes previous sensing difficulties caused by patient physiology. DEMG Paul Mitchell (Co. Secy) would not be drawn on specific orders related to improved production capacity but implications are self-evident.

R&D
Main aspects were quicker, cheaper probe design and manufacture.

Manufacture
Focus is on cost cutting through cheaper, streamlined manufacture and testing leading to better productivity. In 2007 125 CardioQ monitors were produced whilst in 2008 50 CardioQ and 350 CardioQ-ODM monitors will be produced. Probe production (via productivity gains) is being increased from 800 pcm to 1400 pcm with increased working resulting in 400,000 probes pa.

Current US market size does not warrant US production and the UK location's increased manufacturing capacity suffices.

Ewen Phillips (CFO)
After these aspects Ewen Phillips (CFO) recapped on technical and cost benefits of ODM, differentiating from other (traditional) alternatives. He indicated that actual usage lags clinical demand while stressing that in USA adoption is later than in UK but once adopted USA use should accelerate beyond that of UK. The UK's adoption of new medical technology (UK developed!) is historically slow.

He was non-committal on capital raising but in discussion with a major private investor (>3% holding) and IFG journalist (German funding obtained this year) it can be assumed that no capital raising is currently planned. Indeed, EP emphasised the focus was on austerity that I take to be reflected by improved productivity, better, cheaper designs and cost-cutting measures.

Summary
DEMG is adequately funded, has improved productivity, lower production costs and increased manufacturing capacity (in UK) of technically improved hardware with focus on cost-cutting and not on capital raising.

So adequate reasons to be patient (no pun intended).

Yet another contract. This one to upgrade the original CardioQ up to the recently released CardioQ-ODM.
Hope this is the start of a steady SP climb and not the usual effect of up on the news and steadily downward in the next few days.
Well done Deltex.

Yes, nice small contract 100 units a month atm with opportunity for this to increase, we need a snowball effect now to push the number of units up. Added to my holding last week, but that's it now, so sit back and wait and wait and wait, but eventually I am convinced this will reward us greekman, maybe with the constraints on health budgets atm DEMG will be forced on the health authorities.
2517

Fully agree. If ever there was a no brainer, this is it. Spend a to save several. Problem is that those that hold the purse strings (government) and those who control the money made available (trusts) don't appear to have a single brain cell between them.
The mind boggles.

Looking interesting, but we have said same before.
But on a rise of +13% on fairly low volume are we about to see that late reported huge buy.
Mind you I predicted that within 3 days of the open day and got it wrong, so my predicting record ain't great, is it !

OK I give up attempting to read this share. Down today over 12%.

In the present market I find I have about as much chance of reading where the sp is heading as my wife does reading a map.

Shame to give up yesterday's gains albeit on low volume, but better times lay ahead for DEMG I'm sure. As for reading the sp of any company, I hold VGM, today the buy/sell ratio (taken at face value) was 80:1 and the sp dropped, so don't feel too bad about reading sp's wrongly, although it would help if your wife was a better map reader ha!ha! Mine is a mind reader, oops got to go she just asked who was I writing to about her ha! ha!
2517

Thanks George,

Not worried about not being able to read sp's at the moment, just find it annoying.

Agree re better times for Deltex.

According to todays Daily Telegraph, the NHS recorded a surplus last year of 2.1bn. The Department of Health stated that it was up to individual trusts to decide how the surplus would be used for the benefit of patients.
Just think 2,100,000,000.
Lets look at a couple of options.

Option A....Spend some of this on putting as many CardioQ,s as required in every hospital, leaving a huge amount to spend on other life saving technologies.

Option B....Spend all of it on plush new offices for the top heavy administration.
New carpets, expensive wallpaper, furniture perhaps.
And of course not forgetting all those extra overseas (I understand the Bahamas are nice this time of year) conferences that are essential for the understanding of these job worthies.

Call me a cynic (yes I know someone will) but option B looks a certain bet.