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

More good news from this company, and the share price has jumped back up to previous levels. If it breaks out over 30p, look out!

Does anyone else hold these? I'm not ramping, it's just I'm on my own in this and it's been a nervous month or two, debating whether to hold on or bail out.

Hi Grajul

I hold these. I have taken profit a couple of times on the way up and down but basically hold these for the long term. I think they have a lot of potential.

i have 26750 bought at ave 25.4. a well known tip sheet sees 80p in less than a year. i will be happy with 50p. prospects are excellent but as will all such companies it is quite a gamble

Well worth a punt, 1.00 nav and at a current 28p price.


Reading Deltex Medical s (DEMG)
recent interim results
announcement,one phrase in
particular jumps out:Feedback
from doctors and hospitals alike
suggests that we may have
reached the tipping point on the
road to mass adoption.
The tipping-point?On the road
to mass adoption?Perhaps a tad
more literary than what you may
expect from the usual biotech
press release but nevertheless the
phrase is an accurate description
of what s going on in hospital
wards around the country.
Deltex Medical sells a device
known as the CardioQ system,
which has recently been put to
test on claims that it s a much
faster and more effective means
of stabilising patients recovering
from surgery.
Traditionally,patients emerge
from surgery dehydrated and
weakened because of the nil by
mouth requirement that
prevents eating before an
operation but leaves the blood
supply to major organs,
particularly the gut,under strain.
A patient may suffer organ failure
and even death.
Deltex s CardioQ system works
by a technique known as
haemodynamic optimisation ,
which involves keeping the
supply of fluid and drugs at an
optimum level before,during and
after surgery.
It s administered by an
anesthetist,who inserts a
disposable probe into the
patient s oesophagus prior to
surgery and injects the required
amount of liquid.Alternatives
include Lidco s (LID)lithium
chloride treatment,although it s
considered less suited to the
operating theatre because of the
time it takes to get a reading,
whereas CardioQ is the only
device capable of providing
continuous readings throughout
surgery.
Naturally,the benefits of such
a system to patient and doctor are
manifold.For the patient,it s an
altogether faster and more
comfortable recovery.For the
doctor,it cuts down on the
amount of time a patient spends
in post-operative care and
therefore reduces the potential
for further health complications,
including exposure to hospital-
contracted MRSA.In turn,this
has massive cost benefits for
doctors and hospitals alike.
These benefits were proven in a
recent study of the CardioQ
system on a random study in the
NHS-run Medway Maritime
Hospital.Testing on 139 patients
over a four-month period proved
Deltex s device shortened the
average length of stay of patients
by three days.Medway chief
executive Andy Hill estimated the
trial saved the hospital 400 per
patient amounting to annual
savings of 1 million a year or the
equivalent to running an entire
ward for a year.
Publication of the Medway
study,plus some 100 medical
journal articles on the CardioQ,
has resulted in renewed interest
in the UK in the system,
according to Hill.The most
important market is the UK
market and it s really our test bed.
We re working with hospitals
about how best to address
patient needs and our
distributors are coming to us
excited about selling into
hospitals rather than doctors
and almost invariably all the
costing decisions are with
hospitals these days.
The key to winning over
hospitals is to have a product that
is unequivocally superior to
anything else already on the
market.A product then becomes
the standard of care ,which
basically means it becomes
unethical not to use it if it s
proven to be in the patient s best
interests.This is the road to
mass adoption that Deltex
describes and it s a lucrative one
for any company that can gain a
foothold.
So is Deltex on the road to
mass adoption?Robert Colden,
analyst at Charles Stanley and
house broker to Deltex,certainly
thinks so.
At some stage we are going to
see this thing just take off, says
Stanley,who ranks the stock as
his number one wealth creation
stock .It s very good from a
clinical perspective people do
get better quicker.And it saves
hospitals a lot of money.
He reckons it is only a matter of
time before a US-based device
maker makes an approach for
Deltex.From Deltex s perspective,
a US partner would provide it
with a crucial sales network in its
biggest potential market.
Deltex is forecast to have sales
of 8 million in 2005,rising to 12
million the following year.That
compares with sales in the year
ended 31 December of 3 million.
Assuming a possible bid takes
place at between eight and 12
times earnings (the usual paying
price for medical device makers),
then Corden reckons a bid would
value Deltex at around 72
million,dwarfing its current
market capitalisation of 17.8
million.That puts the shares at
around 1 compared with the
current price around 28p but
ultimately,he reckons the stock
will travel to 2.
As to the tipping point?An
explanation from chief executive
Andy Hill himself:My guess is
that we will be able to look back
at this point and say this is where
the company turned the corner.
What a shame to miss out.
PLAYS OF THE WEEK
8 Shares for our daily news updates log on to
by: Emily Parkinson
DELTEX (DEMG) 27.25P BUY
Shares Summary

BUSINESS: Haemodynamic
monitoring. Reducing the risk
of dehydration in post-operative
patients.
VITAL STATS:
Market value: 17m
Dividend: none
Spread: 4%
NMS: 5000
Prospective PE 2004: losses
Prospective PE 2005: 27
1 Potential as 'standard of care' treatment for post-operative patients.
2 Cuts average costs per patient by 400.
3 Cuts down on length of stay by three days per patient. Huge NHS
savings.
4 Possibility of a take-out at a premium within 2-3 years.

I like my gambles and am now in on this one, viewed it before and when it cropped again in shares mag seems like a no brainer this one. Hospitals are run by accountants these days (what a strange world) and if they can save money and give better treatment looks like a good future either on it's own or through a takeover. Downside looks small, sp seems to hold resonably well but is now ready for take-off, hopefully.

I'm also very interested in this one. Medical "things" aren't really my bag, but....... I agree with the sentiments from andysmith above. Like most industries today, they are run by bean counters. I know mine is !! And that can be a good thing or a bad thing, depending on which part of the prism you are making the approach from. There is normally a downside to an accountant slashing costs: attendant are job cuts, equipment unavailability, low morale, etc etc.
BUT..... what I see with this is: A win/win sitch......
1. The equipment is available for the doctors to use
2. It requires an anaethetist to fit it, and a nurse to monitor it (probably...therefore, no reduction in staff, just a small demographic shift)
3. It saves lives (and of course, the surgeon demonstrates a lower mortality rate)
4. It cuts costs
5. It improves hospital statistics, in terms of throughput, and waiting lists (assuming that more ops are done due to discharging patients more quickly)

I only see one downside really. The States, as we all know, don't have a NHS essentially. The hospitals/physicians make their money from private subscriptions and medical insurance. Will they be happy to trial/recommend and accept something that shortens the life (no pun intended) of a patients' hospital stay, thereby reducing their income. I would like to think that morally, they will........ and of course, the U.S. has a LOT of people.

I think it could be a rocky ride, with slow uptake, followed by a huge demand, followed by an inability to supply quickly enough, followed by lots of profit !

However comma.......... I'm gonna get in

Now........ where exactly do they shove that thing ???

I just used my last available funds on this one but if it doesn't go mad straight away I may come back for more if I take some profits from elsewhere.
Can't see how it will fail in UK?? Maybe just needs NHS to wake up to the potential improvements to their costs/reduction in waiting lists and potentially reduction in MRSA cases. Probably more useful in improving things than our bloody government half wits!

Well, we may be at odds over the government andy. But I'd always rather be a mid-liberal leftie(ish) loonie than a smack 'em up, right-wing tory(graph)reader.
Goverments, accountants and Chlymidia......... who needs 'em.

Save the whale..........Oh, and make me rich !!!

What else do you hold andy ?

Errrmmmm..... let me re-phrase that !

Which other equities are you interested in ?

Save the whale..........they eat those horrible, nasty, revengeful, quickly-multiplying........ plankton !

I agree, lets save the whale or even better feeds politicians and accountants to the killer ones!! I don't particularly care about politics right now but there are products to actually help the NHS but all our right honourable friends talk about is throwing money at the NHS! Get a grip and specify, especially ones that might make me rich, as well as help when I have an op next year!! HCEG has a good product to improve resistance to MRSA, I dont hold though yet. My other risk in medical is MMG which is moving to clinical trials for treatments for cancer and aids, an interesting year ahead for this one.

Others currently are doing well with GLD/HNR/IDS, have a few others in small profit or break-even and hoping and praying for SEO to come through!!

I'm in with just as diverse a mix....... GFM, ARX, MT. (Don't even go there !!!)HBOS

Looking at a few others...... GHH, SNCL, NCU (the ONLY footie team)

Save the whale........ Oh, sod it, let England thrash them tomorrow !!!

Hi guys
Seeing as I started this back in Feb, thought I'd comment. This was going nowhere so I got out at breakeven a few months back. Always kept an eye on it though and believed in it, so I am back in!

Afetr the write-up in Shares Mag hopefully interest will pick up and if we are a little patient tehn this should take off.

By the way, I am a bean counter, but i take no offence, in fact I agree with you! Cheers for now.

grajul,

Glad to have you back, I've got out of a few doing not a lot but also keep an eye and get back in occasionally, I think this one is worth holding and agree it is just patience but the rewards should come within the next year.

Sold out a while ago on small profit but when i can release some profit in BPRG i'll be in too, good luck to all.

AdieH, hello again, looks like a good use of your profits, just hope SEO eventually give me some profit!! if not will get out and maybe top up on this one. I have some others in consideration as well though but have to unlock some funds first.

pdx looks good Andy, rumours of deal with heinz imminent, up 4p today and was up 7.5 on Friday, for short term profit may look good... DYOR.

Well, that was an interesting day for Deltex...... They get a good ramping in "Shares", and the price remains rock solid ! The sell to buy ratio is over 40:1 albeit 400,000 being "T" trades.... That's still over 23:1. The real split........ using the actualised figures is pretty much 2%.

For a product that's about to receive mass adoption in an industry that's 99%financially supported by a government, they're really weird figures maaannnnnn !! (Neil, the young ones)

Ok, let's speculate on this one then..... Oh, I already did that !!!..... Let's debate this one !

Save the whale..... then the Japanese can't kill our cosmetics industry ( I also hold Swallowfield !!)

I believe that any trades over 27.85 were actually buys not sells. I bought 2 lots of 10k for 27.93 and they were displayed as sells.

Why all the sells today ? Does somebody know something that we don't ? or is it us that is selling ?

I've sent Andy Hill an email today asking some questions regarding future sales and when he replies, if appropriate, I will post the answers here.

Save the whale....... I like whales I do......

they were not sells. they were buys probably made to appear as sells. the shares that i bought certainly appeared as sells.