Good result as expected. They now have enough cash for the next...

Good result as expected. They now have enough cash for the next 12-18 months to execute their business plan. Hopefully future updates and announcements of sales and distribution partners will put a floor under the share price. Investors would be mad to sell at this level with so much upside potential.

On the question of potential competitors to SIM, I watched the lateline interview from last year again ( http://simavita.com/media-centre/news-coverage/ ) and Ticky Fullerton mentioned Kimberly Clark and Proctor & Gamble as potential competitors. From a simple review of their websites, they are both in the business of manufacturing and selling nappies and other fast moving consumer goods. They are not in the same space as Simavitas being specialist medical device / IT technology.

I can't see them developing a product similar to SIM any time soon. They are more likely to sit and observe SIM over the next few years. If SIM becomes a commercial success and threatens their sales of adult diapers, then all manufacturers of adult diapers would be looking to secure a manufacturing licence from Simavita to embed the SIM compatible sensor within certain specialised product ranges. Remembering that SIM is targeting the 72hr assessment period initially, which would only use up to a dozen or so pads per person per assessment, so is therefore not a threat to any manufacturer at this stage.

There are considerable strategic benefits for manufactures to align themselves with Simavita, as the software produces reports and recommendations for which types of diaper to use for the elderly person over the life of their care plan in the aged care facility (or in their home when the home care product is released soon). Hence Medlines and Abenas alignment strategy.  

With no competition except the old inefficient innacurate pen&paper manual process, and no commercial competitor on the horizon, my confidence grows. It is interesting to note the terminology of the current customers, nurses, CEOs etc who use SIM and have provided testimonials on the simavita website ( http://simavita.com/product-sales/testimonials/ ). They all refer to the pen and paper system as "the old system". With the aged care sector increasingly becoming more corporatised, as evidenced by the recent float of Japara Healthcare, and the CEOs of facilities looking to improve performance and introduce industry leading innovation to bolster their own standings amongst aged care providers, I can see "the old system" quickly becoming viewed by the industry, health professionals, academics, training providers, governments and the families of ageing people, as a sub standard level of care. With that perception, "the old system" can only decline in use and "the new system" SIM can only increase in use.

I will be happy to buy as many shares as I can afford of any impatient investor looking to sell below 40c.