Oct

17

Austin Medical Technologies Inc. (Symbol: AMTK)

Filed Under Medical Equipment & Supplies 

Came accross this company when I did my research last weekend. They used to be traded as high as $0.50/share. Then it’s been going down drastically and currently it’s traded at $0.05/share. I’m not really sure if the stock is going to perform well sometime in the near future, but looks like the company is doing pretty well. Thought I’d post it here maybe someone will be interested in invest in this company since the price/share is really low.

About the company?
Austin Medical Technologies delivers “DIRECT” from the manufacturer to the Surgeon, the only technology based, “Single Source Supply Solution” for custom sterile surgery trays made up of 80% of all disposable surgical devices utilized in surgery. Currently the company has contracted with 200 eye surgery centers including the 2 largest eye surgery centers in the USA. The market for custom sterile surgery trays is a $2.1 Billion market here in the USA.

Austin Medical is dedicated exclusively to the Ambulatory Surgery Center (ASC) market. Ambulatory Surgery Centers (ASC), also called outpatient surgery, and same-day surgery, refers to surgical procedures which are complex enough to require a dedicated operating room and specially trained staff, but do not require an overnight stay. According to 1996 U.S. government statistics, ambulatory surgery centers account for 31 million or 44% of the total surgeries performed in the United States. Five million surgeries were performed on eyes. New surgical techniques such as laser surgery allow procedures to be done more quickly and/or with less surgical trauma.

Under the brand name eyeDirecti, Austin Medical is initially focused on Ophthalmology owned and operated surgery centers which is the fastest growing segment of the ASC market, growing by 25% per annum, consisting of 2,500 practices with 15,000 surgeons performing over 5 million surgical procedures annually at a supply cost of $400,000,000 per year. (Source: Yahoo News)

Recently they just had a press release saying that they have just added 14 new customers in the 3rd quarter, adding new sales of $1.1 million over the contracted period. And one more thing, Austin Medical is positioned to capture $40,000,000 (10%) of this $400,000,000 market within the next 4 years. As I’ve said before, I’m pretty sceptical if this stock is going to perform well, but looks like if you look at the company profile and the industry, the company is surely going to be doing well in the future. We’ll see about this. I’m going to be watching this company very closely for the next few months.

Quote of the Day:
If we find a company we like, the level of the market will not really impact our decisions. We will decide company by company. We spend essentially no time thinking about macroeconomic factors. – Warren Buffett

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