VCR ventracor limited

+devices, medicare and takeovers

  1. 22,691 Posts.
    I believe these three components, summed, constitute the share price.

    1. Devices.
    The VCR LVAD device is elegant but also less costly than designs using bearings or valves of any kind.

    The VCR Patent cannot be infringed and the design is so revolutionary that it is almost impossible to get anywhere near that.

    Bloodclots, damage to blood cells, heating up of the device, rejection and noise are some of the problems these other devices encounter but are virtually non existent in the VCR device.

    In my opinion, as long as the patient is healthy, his/her life is not limited by the VCR device as it just keeps on performing.

    2. The Medicare decision on Sept. 15.
    The VCR design has the design and quality that will continue to be in demand IMHO.

    It is said that the US Medicare could wholly or partially subsidize LVADS and associated costs and up to $US 12 Bill. costs are mentioned.

    The all-up cost of a device, surgery, hospital costs, etc. is about $US200,000.

    Thoratec asked for this as a much larger market is really needed and there certainly will be if the decision goes through.

    The effect would be to increase share prices and VCR would be no exception. I can only guess it to be worth say at least $1 per share.

    Before the retracement I did complain that the price had already incorporated that, instead of a recommended fraction.

    3. Takeover.
    The prudent investor will need to take that into account.

    Sure, VCR would like do the pivotal trial themselves-they have the means to do so- and market it, but the threat of a partial takeover -say up to 75% - at a good price remains and needs to be taken into account.

    Summarizing, I would say that puts the VCR price at say $ 3.40 and at $3 while we wait for the Sept.15 decision.

    If there is to be a second correction, then the above mentioned items should limit the size of that.

    Gerry
    Please do your own research and you decide if and when to buy, hold or sell any stocks.
 
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