I would be seriously cautious now with IMI.Just to reviewIMI...

I would be seriously cautious now with IMI.

Just to review

IMI have new technology which is said to revolutionise the ecg industry. On the surface this all sounds plausible and there have been a few studies that appear to support their findings, although I hasten to add that the reports are not in major journals such as Lancet.

IMI have the Intelliheart test that has provided a stream of income albeit tiny when compared to operating costs. About a year ago their were regular announcements touting the growth in clinics and industry checks. These announcements have stopped.

Deals with the Dept of Defence and a retail deal with Sigma was also announced. However, these announcements lack detail and substance. We still don't know anything about them. IMI have gone to Italy to peddle their wares. The fact that there is an Italian connection may or may not be an advantage. We don't know how this will translate to dollars. The theory is that TB is sitting member of the Italian Chamber of Commerce, this is in Italy and Italy is in the EU and Voila (i know it's French)instant cash flow. I hear some of say yes but it's in Italy and I say well so what.

Cardanal was purchased and will piggyback on the Intelliheart machine enhancing its capability. The benefits from this so far don't appear to have made a difference to the bottom line. Cardanal by itself is a means to do a more comprehensive ECG that allows digital storage. where's the business plan?

IMI made noise about FDA but nothing has come of that.

There appears to be some trouble at the top with new directors appointed and shares being sold off by the Chairman. This will cause in the short term some instability while they learn about the product and get comfortable with the culture that is IMI.

We have seen the SP move from 1.6 to 7.0 on very thin, and I I know this is in hindsight, irresponsible news that got everyone excited. I am sure there are people out there who have lost money and has probably been a good lesson on what can and often does happen with stocks. You see it all the time.

Fundamentals. There are no fundamentals atm. The company had $3.5m in the bank in Oct and are spending at $800,000 a quarter. The real news (if there ever was any) has dried up.

From a TA point of view yes the price has obeyed some of the laws however, but I always remain cautious about TA and have noted a few calls based on the charts that have not materialised.

All in all a disappointing performance.

Look I know the people at IMI are a nice bunch and the product is the greatest thing since sliced bread but at the end of the day they have asked for your money with the idea that they have something that will give you your money back plus some for mum and the kids.

In the meantime the SP is slipping. The news from Oct is still coming and the cash is being spent. And to top it off there is some real fishy trading going on.

I have been watching from the sidelines having sold out in Oct mid to low 4's. The price has gone lower and yet I am not tempted to buy just yet. That is my disclosure.

All the best to holders
BW

PS Please feel free to argue any point. It's all about the learning.