acg analysis

Technical analysis at the bottom, thanks for reading.
One company I've invested in is ACG(Atcor Medical). This is a decent post I've spent a little while preparing so please spend 5-10 minutes reading about Sphygmocor. It is the "gold standard" in measuring arterial stiffness non-invasively.
This company is cash-flow positive, has $2.8m cash on hand with respected, consistent and long term management. It has a market cap of $17.5m and compared against other companies(valued currently on market at $100m) that don't have revenue, income, casflow positive, low issue copared with say 1b shares, this is probably the cheapest and one of the best companies around. I find this 5 times undervalued and would expect it to be more valued correctly at $0.77c
This will be 20c+ within a few weeks as technically it's starting a re-rate. Once 0.14c is broken, 20c will be reached. The flavour of the market with current biotech/medical companies, is to have their options converted in FPO's to bring in some cash and ACG has a good amount of 0.215c options coming up in October 2013.

http://www.atcormedical.com.au/

AtCor Medical Holdings Limited (ASX:ACG), the developer and marketer of the SphygmoCor®
system which measures central aortic blood pressures and arterial stiffness non-invasively, today
announced net profit after tax of $2.7 million for FY2013, compared with a loss of $2.0 million in
the previous corresponding period. Total revenue was up 41% to $9.1 million (FY2012:
$6.4 million).
“We are very pleased to be able to report strong sales growth and profit for the year,” said AtCor
Medical chief executive officer, Duncan Ross. “This result reflects a rebound in the pharmaceutical
trials market, where our business is expanding to provide products and services to new clients and
in new drug categories; and increased sales of our easier to use SphygmoCor XCEL system,
which has attracted strong interest from researchers and clinicians. We benefited substantially
from cost savings implemented last year.”
AtCor’s FY2013 sales were up 39% on a constant currency basis compared to the prior period.
Global pharmaceutical sales rose 69% to US$6.1 million and US non-pharmaceutical sales
increased 21% to US$1.7 million, both records. This was driven by strong sales to researchers
including a US Government funded study, and growth in clinical practice sales to medical
specialists such as cardiologists and nephrologists. Clinical practice sales were especially strong
in the second half with the introduction of the new US CPT lll code covering the SphygmoCor test
and launch of SphygmoCor XCEL.
Sales in Australia and New Zealand grew following the launch of AtCor’s new SphygmoCor XCEL
in May 2012, and were up 77%. Asian sales declined, with registration of the new XCEL device
still pending in several countries including China. AtCor’s European sales declined compared to
prior year, reflecting difficult economic conditions especially in southern Europe. Following the
resizing of AtCor’s European business to match demand, Europe returned to contributing positive
earnings for the year.
Gross margin was a healthy 86.6%, up from 84.4% in the prior year. Improvement came from both
volume and product mix. Expenses were 16% below the prior year; and 14% below the prior year
in constant currency terms. Cash at 30 June 2013 was $2.9 million, compared to $1.1 million at
30 June 2012. Net cash inflows from operating activities for the year were $1.8 million, compared
to net cash outflows from operating activities of $1.2 million in FY2012.
AtCor’s growth initiatives – simplifying the use of its products, encouraging support by key
physician groups and coding, establishing important strategic alliances, expanding disease states
covered and pursuing a growing number of companies engaged in pharmaceutical research - will
help generate continued and increasing demand for SphygmoCor technology and services.

According to the 2012 Annual Report, 64% is held by the top20 or 95m shares. They haven't released the 2013 AR as of yet.

The stock has 151.8m shares on issue.

EPS is 0.018c

PE Ratio is 7.5

$2,734,023/151,800,000.=0.018

.135/.018=7.5

Achievements included:
• The official launch of the CPT IIl code covering the SphygmoCor® test from 1 January, with the US Renal
Physicians Association;
• US FDA clearance to market our new SphygmoCor XCEL system;
• 153 new clinical studies published that used SphygmoCor, adding significantly to our evidence for use in
clinical practice;
• Two new patents published bringing AtCor’s IP portfolio to 8.
Initiatives that advanced during the year included:
• Further product development of our joint technology under the SunTech Medical alliance;
• Implementation of our strategy to drive reimbursement under the new US CPT code in select Medicare
regions;
• New resources allocated to the business development of our pharmaceutical business, including
expanding the disease states covered and targeting new companies to expand our customer base;
• New intellectual property under review or in development;
• An US marketing alliance with an urology disease management company, Xion Medical, to market
SphygmoCor to urology specialists signed in June 2013.

NTA increased from 1.3c to 3.2c

Pillar 1-Develop and launch an easier to use cuff based device: As the established global gold standard
and market leader in the measurement of central blood pressure and arterial stiffness, it became clear to us
that in order to sustain and grow this position, AtCor needed to develop an easier to use device. This was
supported by feedback from our customers; ease of use was viewed as a major obstacle to adoption of
SphygmoCor in clinical practice. Exploiting AtCor’s core competence in signal processing and waveform
analysis, we have been able to develop this easier to use device without any compromise of the quality of the
central arterial waveforms and reported metrics that we provide. No competitor has been able to achieve this
level of waveform quality nor the breadth of reported metrics in a cuff based device. Market feedback has
been exceedingly positive from all customer segments; clinical practice, research and pharmaceutical clinical
trials. Additional updates to SphygmoCor XCEL are planned to further differentiate and better serve market
segments. SphygmoCor XCEL has received regulatory clearance for sale in Europe, the US, Australia and
select Asian markets, including most recently South Korea. Registration applications are active in China,
Canada and Mexico.
• Pillar 2-Successfully secure a US CPT code covering the SphygmoCor test: The CPT III code (Common
Procedural Terminology category III) to cover the SphygmoCor test, filed for by the US Renal Physicians
Association in 2012 with the American Medical Association (AMA), became effective from 1 January 2013.
The code now allows US physicians the opportunity to file reimbursement claims related to central aortic
blood pressure assessment. This was a significant milestone in SphygmoCor’s path to greater clinical
adoption. A CPT code does not automatically guarantee reimbursement. It is a time intensive process to
negotiate with payers through supporting specialist clinicians for reimbursement, which is most effectively
achieved at the regional level. The AtCor field team is currently working with key opinion leading physicians
in four Medicare regions, covering 20.5 million lives of which an estimated 58% have hypertension, to garner
full coverage. There are 10 Medicare regions and securing coverage in at least two of these is an important
objective to facilitate more widespread use of SphygmoCor, as this will allow the Renal Physicians
Association to file for the more robust CPT category I code. Full details of the process are available on line in
our July Investor update.
• Pillar 3-Pharmaceutical trials expansion: The pharmaceutical trials market is important for both our near-
and long-term business success. In the near term, this market is responsible for over 60% of AtCor’s revenue
and provides an important source of cash generation. In the long term, this market has an annual potential of
over US $100 million per year for SphygmoCor devices and services. AtCor has earned a solid reputation in
this market through focusing on key value drivers, particularly the quality of our people and services coupled
with the global reference standard status of the SphygmoCor system. This has been rewarded by multiple
repeat contracts and contract expansions. To date, AtCor has successfully completed, or has in process, over
30 clinical trials with more than 9,500 clinical trial subjects enrolled. To further expand this business, AtCor
invested additional business development resources over the past 9 months to both enlarge our opportunity
with new pharmaceutical companies and to expand into new therapeutic areas with both new and existing
customers. In addition to achieving record pharmaceutical sales revenue in fiscal 2013, AtCor has built its
potential deal pipeline to US $13.6 million. Our team is relentlessly focused on product and service innovation,
and will continue to expand the breadth of our offerings to these important customers.
• Pillar 4-Leverage Technology and IP- SphygmoCor is a platform technology: AtCor retains 8
commercially relevant patents in multiple geographies. Additional IP is in development. Our core competence
of physiological waveform capture and analysis does not limit the technology to current applications. We
realise that as a small organisation, our focus must be maintained. Effective partnering, therefore, provides
us the ability to build further competitive strength in our current market segments and can be leveraged to
develop new market opportunities. One example is our global alliance with SunTech Medical. Our first jointly
developed and branded product is expected to launch within the next 12 months.
Cardiac rhythm management represents a new potential market for AtCor. After securing our intellectual
property (IP) and conducting a small clinical trial that showed the clear advantages to using SphygmoCor
compared to current methods, we are gearing up to commence a joint clinical trial with major medical device company in 2013.
Now the secret to good charting is how to read the 10day hourly and other indicators and or overlays need to be in correlation for it to succeed in having a rising sp.
As seen here on the 10day hourly the ma's are sweet and the slow stochastic is oversold and crossed over. The 2m daily is pushing up against 14c, has a macd above the 0 line, divergence on the histogram and a crossed over slow stochastic coming from oversold territory. As the sp rises in the next 2 weeks the weekly ma's will come into order aong with the slow stochastic cross, the macd is above the 0 line.