Thursday, February 16, 2006

FONR @ 65 cents

Allan,

FONR looks to me like a good insider buy to buy and hold on for the near future. The insider buy wasn't huge and was to make a statement. This stock looks very cheap: Remember you were going to get an MRI for your back and had a problem with clostrophobia? Well, they make the machine that would have solved that problem. It also appears to allow the radiologist to get look at your back in a weight bearing position rather than with you laying down.

Ilene


About FONR: FONAR® was incorporated in 1978, making it the first, oldest and most experienced MRI manufacturer in the industry. FONAR introduced the world's first commercial MRI in 1980, and went public in 1981. Since its inception, FONAR has installed hundreds of MRI scanners worldwide. Their stellar product line includes the FONAR UPRIGHT(TM) MRI (also known as the Stand-Up(TM) MRI), the only whole-body MRI that performs Position(TM) imaging (pMRI(TM)) and scans patients in numerous weight-bearing positions, i.e. standing, sitting, in flexion and extension, as well as the conventional lie-down position. The FONAR UPRIGHT(TM) MRI often sees the patient's problem that other scanners cannot because they are lie-down only. With nearly one half million patients scanned, the patient-friendly FONAR UPRIGHT(TM) MRI has a near zero claustrophobic rejection rate by patients. A radiologist said, "FONAR UPRIGHT(TM) MRI - No More Claustrophobia - The Tunnel Is Gone." As another FONAR customer states, "If the patient is claustrophobic in this scanner, they'll be claustrophobic in my parking lot." Approximately 85% of patients are scanned sitting while they watch a 42" flat screen TV. FONAR's latest MRI scanner is the FONAR 360, a room-size recumbent scanner that optimizes openness while facilitating physician access to the patient.

3 comments:

Ronny said...

Hi Ilene,I love the story,but why has their revenue dipped so much the last 2 quarters?
Thanks,Ron

Allan said...

Hi, Ron:

From http://biz.yahoo.com/bw/060209/20060209005584.html?.v=1

they're intending to get more aggressive in advertising: "Our strategy during the most recently completed quarter was to focus on cost control and cash management, while developing a more proactive and aggressive sales and marketing campaign," said Raymond Damadian, M.D., president and founder of FONAR. "To this end, we ended the second quarter, traditionally a slow period in the year for scanners sales, by equaling our record for the quarter ending December 31 with five sales of our revolutionary FONAR UPRIGHT(TM) MRI."



Revenues for the second quarter of fiscal 2006 were $10.5 million, compared to $10.2 million in the first quarter of 2006 and $29.5 million in the second quarter of fiscal 2005. Overall revenues attributable to product sales were $4.2 million in the second quarter, which is flat compared to the first quarter of 2006 and a decrease from the $21.5 million in product sales reported for the three month period ended December 31, 2004. The reduction in product revenues were primarily due to increased marketing and advertising pressure from our competitors attempting to minimize the unique medical benefits of UPRIGHT(TM) MRI, which companies may not make UPRIGHT (TM) MRI because of FONAR's patents.

ilene said...

Ron, that was me, ilene, i'm trying to login again. - ilene