The tantalising prospect with PME, which seems almost within...

The tantalising prospect with PME, which seems almost within reach, is that the can become the Microsoft of medical image handling. That enough people and organisations have adopted and learned PME’s system, that it becomes a no brainer for other organisations to adopt it as well. Microsoft gained their initial toehold when the then 800-pound gorilla in the computing world, IBM, decided to use Microsoft’s operating system in its IBM PCs.

We PME shareholders rather hope that PME is gaining the equivalent toehold by having their system adopted by the 800-pound gorillas in the US medical scene, the prestigious teaching hospitals, such as Mayo, Harvard etc.Evidently Mr Market thinks that the size of the potential market and the chances of PME to capturing that market is not incompatible with the current stratospheric share price. PME keep saying the market for their product is currently fragmented and in excess of a billion. PME’s sales are currently only $36m.

However, the optimism is not unanimous. Some gloomy guts naysayer has currently shorted 0.3% of PME’s stock. I salute his (or her) for the size of their cojones in shorting such an illiquid stock.

Unlike many other tech stocks still with such room for growth, PME is a cash generator rather than a cash burner. A downside is that PME’s product is not a mass market item with potential for explosive adoption, rather, it has to be sold to inherently conservative institutions.

I have been trying work out how to include the “P” in PME in the current meme for the WAAAX stocks so as to give PME some more visibility. They deserve it. Perhaps it should be PAWAAX although, in this context, any connotation of a dog slip-sliding away might be tempting fate.
I suppose it depends on whether it is surfboard wax or dance floor wax.

Anyway, Alphabet can have my PME shares for $50 each.

I have been saying that for a while, but now it doesn’t seem as farfetched as it did when PME was $10.

cheers