Rumor has it....

Applied is looking to finally get sold! Said is seriously worried about whats coming next year with this medical excise tax thats going to hit 2.3% of this company's revenues. That's roughly 15% of a company's profits on avg. being that Applied is already cheap as hell and doesn't provide an expense account or trips/rewards, it only makes sense for Said to sell. He's not going to be able to stay afloat if Obamacare goes thru. Plus he's in his 60's! What does he care if he sells the company and makes a few hundred million in JnJ/Coviden/Stryker stock? I also heard one of those big 3 were seriously considering Applied but once they heard Applied's vision that they don't want to play in the robot arena, they backed out faster than you can say thx but no thx....

 

I don't buy it. No one is selling because of the excise tax.

 

Companies don't pay taxes. The customer pays taxes. Companies pass along the tax to them.

And I don't buy it either.

 

Yeah but we don't give price increases to our customers and in my territory, a couple of my accounts actually have had their pricing go down because they've been doing business with us for so long. Applied's thought process in theory works, but they won't be able to sustain for long if they don't pass this excise tax along to their customers.

 

What do mean Applied doesn't play in the robot arena? Every hospital I go to uses Advanced fix as a camera port or an assisants port and uses our 5 bag with the robot because it goes down the robotic 8 port where a 10 bag can't. Yeah but you're probably right we aren't in the robot arena. Maybe you suck at selling. The robot is a joke anyways, there are no clinical benefits except on prostates and cardiovascular everything else they can do the same thing with their hands just as good without increasing costs by thousands of dollars. The robot is the biggest scam to ever hit healthcare it's just clever marketing...excuse me my pet rock just peed.

 

I would agree that the robot is overmarketed and only really clinically proven for certain cases, however u have to think big picture. Said owes a lot of money to the banks and venture capitalists who helped kickstart Applied and they want to start getting some of their money back. U need to have a better understanding of financial dealings and how business is done at a more grander scale than in the OR. I'm not claiming to be Ben Bernanke, but Said owes a lot of people money and like the above poster mentioned, Said isnt going to be around forever. It might actually be a good thing for Applied to be bought out. There's a lot of pros to being part of a larger organization.

 

Nothing good can come of Applied getting bought out...except for those with stock to make a quick buck. If Said wanted to sell Applied, he'd have done it years ago.

 

Applied is not being sold. Applied has purposefully boughten excessive buildings and invested in R&D heavily over the last year to lower profits so the IPO would have a low valuation. To sell now would cut the value by half at least.

 

You hit the nail .... See the S1 filing that is on its 4th revision, a must read for all of you. Applied is purposely trying to lower the value of the stock by spending like a drunken sailor in real estate, other assets and R&D therefore lowering profitability and maybe going negative for a couple of quarters. It is also listing the shares in the penny stock. The purpose is to lower stock value and repurchase the stocks and keep the company private. I have to admire the boldness of the move. For those of you who owe stock in the company, request a repurchase now because this thing is going to the gutters and remain low for a long time until all the VCs are paid and after that there is 0 chance of going public. The product pipeline is drying up, that might explain the purchase of 9.1% of Cardica that might not bring much to the table since they are in financial dire straits for a reason, their products don't sell. Interesting to see what's to come for the near future. Can Applied pull the trick this time or the uncontrolled expansion will make it collapse under its own weight? I see some serious fat trimming after the repurchase of the +700k shares offered.

 

And BTW Obamacare and our present hard economic times causes hospitals to look for ways to reduce expenditures, including buying from cost-advantageous vendors. These conditions favor Applied.

 

Possibly. Reprocessing of trocars, which is the majority of our business, is definitely starting to inch its way into our profit margins. If even 15-20% of hospitals across the country look to reprocessing from JNJ or Stryker, or to nondisposables, we'd all be looking for new jobs. And if i hear the word "Energy" one more time, i'm going to throw up. It's at least going to be another year before it's even rolled out so stop talking about it. I like the clip applier. I like the Alexis. Love the Gelport/Gelpoint. But we need to start introducing some new products......FAST

 

from today's news:

http://www.foxbusiness.com/government/2012/12/04/new-health-reform-tax-scares-away-venture-capitalists/

Really? Company's don't pay tax? Are you that stupid or should i just assume you're one of Said's US Surgical cronies that is still drinking the kool-aid and thinks this is 1994? Wake up guys, you're in for a rocky road the next 2 yrs....
"Companies that make medical equipment to save lives MUST pay the excise tax....Trade association AdvaMed estimates 43,000 jobs will be lost due to the new tax. Also, it will be the little guy who will get slammed, as small companies with few employees are some of the biggest drivers in this sector."

 

Of course the "company" will pay the tax. Every "company" pays taxes you idiot. But do you think they just say "now our profits will be 2.3% less than before" or do you think they raise customer prices 2.3% to offset the tax? Every time taxes are imposed on companies, prices go up. It's economics 101.

 

No shit Sherlock, but apparently you don't work for Applied because this great company we work for either doesnt raise its prices AT ALL (bad business model Mr Economics 101) or 2) in certain instances, we decrease our customers pricing. Yet as a sales rep I'm still responsible for that lost # (and lost commissions) as a result. But what does Applied care? They're being "the good guys". Get with it pal, you either don't work for this company or are so oblivious of the macro-economic conditions that whatever kool-aid (or in some instances, fat bonus checks some of the mgrs have received in the past few months to "stick around") Said is feeding you, you're just dumb enough to drink it

 

is said the head of the sales division?

 

Good points. Applied won't raise the prices on customers. They won't cut their margins either. Only other place is to cut your commission check a little to pay for it. You can thank obama for that one.

 

Ya'll need to make love, not war. I thought this post was supposed to be about the company looking to get sold, what's up? All i hear is reasons why it is or isn't and it's now turned into someone hating on some managers because they've been getting paid off. And it sounds like some managers are pissed off because one of their own let the cat outta the bag. Uh oh spaghetti-o's!

 

Your would have a lot more credibility if you didn't use words like "boughten". You lost me after that.

 

What world do you live in? Just raise prices by 2.3% across the board huh. What a brilliant economist you are and such a novel idea. You should start a consulting firm to serve all device companies and teach them this valuable strategy of raising their prices to all customers to off-set the tax.

 

That is exactly what consultants do. How much value do you think they bring? Raise prices, cut expenses. They bring fairly simple strategies. You are kinda cute how you think they have sophisticated answers. Healthcare isn't going away, the population is not getting more healthy, hospitals are wealthy and that money primarily comes from the government (medicare).
If the government captures a few dollars from industry, hey industry will still make way more off the government.