I have decided to finally post my thoughts regarding electronic drug detectors as it has now been discussed on HC and I have found articles on 4 different units/manufacturers in the past week or so. 3 are for saliva testing while 1 is specific to urine. I do have a significant holding in SBN of around 2 million shares + options and I am in it for the longer term having held for 12 months and not about to sell just yet.
I do believe SBN has a great product but it will have a limited shelf life as these technological advances in electronic drug detection take hold. One only has to look at the current breathalyser technology. Every Police car is now a mobile alcohol test unit and many work sites also commonly use hand held units for regular random testing of employees.
The Drugalyser unit costs about R25 000 (A$3850) each as well as being reasonably small and portable. That equates to 154 tests at the price CMM is selling the Oraline IV units for ($24.95). These electronic detection units will have consumable items that require purchasing such as sensor pads and items related to personal hygiene such as straws/spittoons. They also require regular recalibration.
Unless SBN start to make significant inroads with sales, which will increase production and therefore reduce costs they will soon be left behind as technology advances. The electronic technology is here now and they will only improve while reducing in cost.
It doesn’t take long for technology to be superseded and with companies eyeing off this ever increasing illicit drug testing market. I would give Oraline a life of maybe 5 years and only if it starts to increase sales and dramatically reduce production costs.
One only has to look at Video. It was introduced to world in 1976. VCD came along in 1993. DVD came along in 1996 and now there is Bluray which was released in 2006. I can now purchase a brand new quality brand DVD player for less than $50…
The company has to start producing significant results…
