SUNBLUSH.CASH+HUGE GROWTH!!

It was rumours in pubs around Leeds/Harrogate/York that sent the price to 10p a couple of years ago. There were a several rumours around at the time.

1)A larger company taking them over (Medical Solutions if my memory serves correct).

2) They had developed a revolutionary new blood production technique whereby a surgeon could remove a small amount of blood from a patient and manufacture more of it in a timescale that would allow an operation to proceed with the patients own blood and blood manufactured from their own blood. The implications were that Jehovah's Witnesses for example would be able to then have surgery with blood transfusions from their own blood. The effect for the average person would be that the blood used would be pure and could not contain any possible third party contaminates. I think this is actually very close to the system they actually got the patent for by buying the Oxford based Haemocell, so it was really old news and not worth the dramatic increase in share price. I was told the price would hit 50p - but I was very niave then. I feel a return to 5p is not unreasonable, bearing in mind this does represent more than 100% rise on todays price, but then it is a penny share and such rises are possible.

3) They had developed a system whereby a surgeon could operate via the internet/ a remote computer terminal. So in theory a top surgeon in London could operate on someone in Australia. Small digital cameras would relay the information and the surgeon could then use the computer to remotely perform the operation. An expensive system, but one that could better utilise a top surgeons time. Again this was a rumour without substance as far as I can tell.

I do have a fair sized holding having averaged down at 1.44, because I feel they have a range of excellent products and have turned the corner, their last half year report saw them break even and my hope is that they will improve from that position into one of profit. They were loss making for awhile but by a series of cost cutting excercises not least of which was dispensing with their sales force to allow distributors to promote their products and rely on worldwide licencing deals they have successfully taken out one of their major cost centres without detriment.

SUN (Surgical Innovations, Leeds - UK based) are a small but intriguing company with interesting prospects. They talk each year of making acquistions to increase shareholder value. Whilst a nice ideal I think it could be a bit amitious. Having said that they have managed to convert nearly if not all of their loan notes.

As always the above is my opinion only and I would strongly recommend you do your own research.