LARGE COMPANIES CAN AFFORD KICKBACKS, MICROCAPS CAN'T

Astoria, New York

The big keep getting bigger while the small get smaller may be real when it comes to persuading clients to use their products with kickbacks. Medtronic is now paying more than 23 million to settle allegations by the Us Dept of Justice for paying these to doctors to encourage them to use their medical devices , as reported by Yahoo News. " Doctors have to buy what is best for them and their patients but sometimes, they are not going to get probably the same service they get from a Medtronic, a Ge or a Boston Scientific. A kickback on top will definitely seal the deal for the doctor to be devoted to one particular product. " FPG commented. Mass production and lower costs of the product doesn't mean that the product is better than a product made by a micro cap. There are laser companies, medical device companies and other technology companies out there that offer better products but are faced with a capital crunch. Large companies know that and that's how they are able to inflict damage. Take for example Lumenis, one large laser company, based in Israel,that was able to fiddle with Trimedyne ( TMED ), a micro cap headed by Chairman Marvin Loeb and his family. The company claims to have a better product but Lumenis was able to sell more as well as infringe on Trimedyne's fibers. Immagine that Loeb was a poor man. Trimedyne might not exist today. Instead, Loeb injected family money into the company and went after monster Lumenis. The conclusion was a early this year settlement of 2 million dollars for Trimedyne and royalties for the short term. This injected fresh capital into TMED has provided a wild card and hope for the future. Meanwhile Loeb has also engaged an investment banker to explore other oppurtunities. " The bottom line is money and the power of persuasion. Hopefully this settlement can be a lesson to other large companies." FPG finalized.