TSO3 Inc (TOS-T)

They make fancy dishwashers for hospitals. They lost a big partnership that was distributing their product globally. No one knows what it is worth. He has been short the company because they have keep having promise but don’t get deliveries.

He exited the story and has not gotten back in. He felt it had had quite a run up and then there was a sell-through issue. He did not know how many sterilizers actually went into hospitals for sterilization. With FDA approval it should put lights and fire under the stock. It is not cheap especially when you don’t have revenue metrics.

They have done well this year and then came off recently. He bought some at a warrant expiry and then exited some time later. He thought there was not enough visibility.

It has been a 10 year overnight success. Sterilizing against super bugs is becoming a bigger and bigger issue. The demand could be quite significant be the catalyst it needs. It could be a takeover candidate as they become more native in hospitals.

Colonoscopy equipment sterilization. You would want to be one of the earlier patients in the day of your test. Equipment is sanitized, but not sterilized. This company has the sterilization equipment. He thinks they will get bought out when they ramp up.

Sold his holdings too early. Had thought valuations were getting a little stretched. They have a device that cleans something that goes into an area which can be fairly high in bacteria levels. On a further pullback, he would look at owning again.

This has really interesting technology. They build sterilization units. The recent move in the stock from $2.20 to $3.70 was because they got FDA approval for using their technology in a new area that the market didn’t expect. They’ve just started commercially shipping these units. They get a price for their units, but they also get a recurring revenue from the consumables, such as trays, etc. A great business model if they can get into enough hospitals and locations. They have a reselling partner that is committed to about 100 units of the sterilizers, and the market is expecting that to ramp up to multi-hundreds over the next few years. If this continues to work, it has a long runway to go.

If you are a hospital and need to sterilize some exotic equipment, the advantage of this company’s product is that it will do it very quickly and very economically. The equipment uses a combination of hydrogen peroxide in a cabinet, where you can put in unusual shaped objects. Recently got FDA approval. Also, they are using their old methodology for another kind of application. There is a definite need for their product. Forecasted earnings for 2017 is only $.02, so a lot of the good news has already been discounted. Not cheap.

This company does sterilization equipment and they just got FDA approval. The stock didn’t do anything for 4 or 5 years, and have now done extremely well. Thinks they will be able to deploy this in many hospitals globally. Over the next few quarters, as more and more people see the company, the stock should continue to do well.

An interesting method of sterilizing medical equipment. They are now seeking FDA approval for sterilization of ‘the sake’ for those over 50. There are more details coming out tomorrow. The debt level is low. It is part of the fight against super bugs.

A really interesting stock. One of those cases where Canadian technology is really leading the forefront. Have a sterilization technology for hospitals, specifically for using at low temperatures. It allows it to vary based on the size of the load. The company has been kind of building and bumping along here. Just recently announced a distribution agreement with a much larger sterilization company, which accelerate their move to profitability. Has this on his radar screen and is watching for the transition where they go from burning cash to making cash. Longer-term, this is one that has a very promising future, but he wants to see it move into the cash flow positive area before he goes into it.

A manufacturer of sterilizing equipment for hospitals. They are proven in the US and Canada. A potential market of 30,000 devices and have sold 7. Next year they are looking for breakeven. He likes a company where you can get in early enough were they are just ahead of revenue and earnings. They are completely protected from a patent standpoint, so there shouldn’t be any competitive threats.

Going to loose 3 cents in 2013 so an improvement. Sterilization in operating rooms. Back and forth with FDA and TSO3. Thinks they will get approval. 3M is a potential acquirer, once approval is achieved.