Hi WL Most third world countries have a waste management problem and yes the metamizer and other waste management systems certainly have a market in place. You will notice that the target market for MDV's waste systems are hospitals/clinics/customs entry points etc... The size and volume capacity of the metamizer is a limiting factor of its market. You will notice that the metamizer is measured in its capacity for hospitals of a particular bed count which translates into waste management parcels of volume per metamizer. The larger model is designed obviously for lager hospitals... I believe a hospital in Queensland is currently using 2 or 3 older metamizers and have recognized the cost benefits to their previous waste management systems, look back a few years to find the announcements... Several governments through Asia and Europe have already put in place the foundations for better waste management obligations for various material handling industries directly and indirectly associated but not restricted to the healthcare industries... There are the equivalent type of waste management systems as the metamizer but on a much larger scale.. Google waste management systems and you get a better understanding of the market that is available globally and then follow the portion of that market for which the metamizer is specializing for...The fundamentals and operating systems of the other waste management system are not exactly the same. Further development and up sizing of the metamizer exposes a further % of that market to MDV... The key component here are government policies in numerous countries that are leading into the legislation of compulsory in house waste management systems for hospitas and clinics and the like... Once this occurs in say India then look out... I'm not certain if in the future MDV management intend to sell the units as a single material item or if they believe we would better profit from waste volume contracts, nonetheless India has millions of tonnes of waste per annum which converts into good $$ for MDV... Management have recently also visited Dubai and mentioned some positive feedback results... The metamizer is high ticket murchandise and movement of 1 or 2 units / contracts make a considerable difference for the company at this stage of its development.
But that's just the metamizer.... Throw in Sunnywipes and Diakyne and its no wonder that you are getting a little excited about the stock.. Its late on Friday night an I'm a bit tired so don't quote me here but I think that recent Alpha report mentioned about $2mil initial / primary revenue from sunnywipes... A 1c Bio/Healthcare company operating under its own steam and with excellent prospects for growth... Find me another...
An SP of 9-15c hmmm a bit ambitious for the short term but yep... definitely not out of the question and IMHO I'd even hazard to say it will go further once at least 2 of the 3 legs of MDV's interests ignite into revenue streams or something other occurs.. I'd probably even hazard a guess to throw the decimal point across another notch if we see a major supply/or service contract into a foreign country... With respect to any or all of the 3 concerns.
The low end of the market has been responding quite furtively toward positive announcements and if the market sees a steady increase in investor confidence then I would say that the positive PS announcements coming out of MDV will gain a considerable watchlist audience... The de-risk factor here at this level isn't that difficult to find when researching...
Have fun with the rest of your research here...
I need a beer after that one...
MDV Price at posting:
20.0¢ Sentiment: LT Buy Disclosure: Held