RReflections on AGM presentation and Q&A, page-30

Third instalment; sorry for the delay. I'll try not to repeat the excellent feedback already posted by others who attended the AGM.

Affeymetrix: The original contract was with eBio, I recall (please correct me if I'm wrong here). The deal hld good prospects for revenues for Anteo. When Affey took eBio over, Affey required that all its products used Luminex beads (a top performing bead). So Mix&Go has been somewhat sidelined, I gather. Geoff was clear that we should not expect to see significant revenues from that source; a pity, but that's how it is.

From the last clause of the latest quarterly: "It is also interesting and pleasing to see some of the entities that have, unsolicited, placed orders." During the most informative Q&A (informative for both the quality of the questions and the substance and frankness of replies), Geoff told us that of the many prior contacts made by Anteo, a number of these were now at last coming back to Anteo (I think the number is in the teens - please will someone confirm?) He said that initially many had more or less said "very interesting, but we're busy doing other stuff right now" (an understandable response - each would have had their own commercial imperatives), but now, are coming back saying, "OK, we're able to have a further look at Mix&Go, to see what it can do for us".

AMG product line: Geoff said it was no easy task to put a new product on the shelves every quarter, but that's the target. All the quality control needs to be there, as well as the basic work in deciding what product to select for release, production, packaging, etc. He made a strong point that Anteo has now clearly moved from being predominantly a research oriented company with a small amount of commercial development, to the converse, where commercial development predominates. The AMG product line is another means of informing the commercial market of this major focus on development - the development of product for use. The work with BBI and POC1 is development - working with them to help develop their own products. The AMG line reinforces Anteo's evolution.

The US and Europe: a good question that ds posed (some may be aware that his day job is not actually to post interestingly on HC at any time of the day or night, but to show an interest in money market matters; hence his question and perceptions are well-informed), was about the financial health of the US at present. Mark Bouris agreed that there was a real lift over the last 3-6 months in the US, not reflected in Europe. So initiatives concerning acquisition of a US company could be well-supported by US finance.

Mark went on to say at some point, that with the changes in countries' phases of growth (I'm paraphrasing here), it was important for a business to be ready to take advantage of those uplifts. I guess I'd see economies behaving as sine waves. So ds, Mark and Geoff seemed to share the same view, that the US is lifting off the bottom now, and ds may care to share his thoughts about Europe. Mark said that Anteo was very ready, poised in all respects - as I see it, that means patents and IP built on fundamentally sound research, clear commercial capability and stance, strong teams and management, and sound financial position. Very interesting and encouraging perspective. And worth remembering that Anteo has been going through some tough post-GFC years. A bit like a good farmer surviving a drought, retaining his breeding stock in good order, not letting his pastures get thrashed, no problems with the bank, and then when the rains come, ready to go!

I've alluded to the quality of questions. How many AGMs do you go to, where there is such a depth of questioning about both the technology and the actual projects on the go, where it is clear the questioners are well informed? At the close, Geoff stated that the Anteo AGMs are by far the most interesting and vitally supported that he has ever attended. Our gathering over lunch (and for a few of us over coffee beforehand and a beer afterwards), was similarly stimulating - and great to see faces to so many familiar HC names, and have the chance to talk. All of us who had visited the Brisbane labs last autumn were able to be at the AGM, and each of us as positive as ever.

The general tone and focus of the meeting? Everyone, Geoff, Board members, Anteo staff (I think there were four senior staff present), and shareholders, were very focussed on what was happening with our current prospects. At this AGM, there was very little discussion, if any, on wider areas of industry, except in relation to positioning the subsidieary as Anteo Technologies P/L. The CEO presentation and discussion was very much about current business activity. Obviously we had all been hoping that by mid-2014 we would have seen BBI moving beyond Phase 4, and into commercial production. We know much of why that has not happened yet (and I talked of the shifting goal posts that ironically our own development in amplification and quantitative measurement has also encouraged - but that's the name of the game!). But at the end of the day, I felt far more optimistic about BBI - it's getting there, but it is taking longer, no doubt about it. {On a side note, as I wished him and the team well as they head off - Charlie and Rachel to the Far East (well, to us it's the near East!), and Geoff and Josh to Europe (Medica conference, and meetings with BBI and POC1) - I thought he was feeling very chipper about those meetings.}

You know, over lunch (I might have been talking with Biotech and his Dad, with whom it turns out I share some common experience and interest)), I was asked what I thought I might gain from coming to the AGM. My reply was that I'd need to take Sigmund Freud's advice, and let my subconscious filter it all. So some of that has perhaps come out in this morning's somewhat tedious post, and if you've made it this far, you can blame old Siggy. I can't put my finger on any particular piece of information I had not already known, guessed, or picked up from some of the outstanding market and other research on HC. My major impression that I have taken away from the meeting is once again confirmation of the quality of management, Board, staff, and so many fellow-investors, and the quality of my own investment. I sleep easy.