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Analyst Report AHPI

Allied Healthcare Products, Inc.

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Allied Healthcare Products, Inc. (NASDAQ: AHPI)


Here at Small Cap Post we bring investment opportunities to people just like you—savvy, everyday investors—to give you the opportunity to earn exactly what you deserve to earn on the companies you invest in. Our latest research brings us to Allied Healthcare Products, Inc. (NASDAQ: AHPI). Companies like AHPI Inc. are on the cutting edge of asset discovery and market growth, giving them the true potential to reach market capitalization sizes like the ones our sector winners have enjoyed.


About the Company

When it comes to critical patient care, where seconds often spell the difference in life saving situations, it is good to have a partner that is safe and dependable.

This is where Allied Healthcare Products, Inc. is at its best.  They provide a range of respiratory products used in the healthcare industry.  To be clear, Allied Heathcare Products, Inc. doesn’t supply things like oxygen, nitrogen or other gases.  Instead, Allied Healthcare Products, Inc. provides the plumbing, valves and regulators that deliver life saving gases to patients.

Allied Healthcare Products, Inc.  has been in the same business for over 70 years during which time this St. Louis Company has nurtured a reputation for quality, dependability and innovation.

The AHPI’s products are designed to go where they are needed.  Hospitals Operating Rooms and patient recovery rooms are where Allied Heathcare Products (NASDAQ: AHPI) products are in everyday use.  The same can be said of sub-acute care facilities like convalescent and home healthcare.  Then there is a special group of life saving products used in Emergency Medical Care.

To appreciate Allied Heathcare Products (NASDAQ: AHPI) means understanding the importance of its key medical gas equipment capabilities; this where 53% of revenues come from.  The group encompasses construction products, regulation devices, disposable cylinders and suction equipment.

It is clear to us here at Small Cap Post that Allied Healthcare Products Inc. (NASDAQ: AHPI) has the right mixture of expertise, capital, and business model to establish its own market leadership and be the next breakthrough.

At the time of hospital construction or renovation, Allied Healthcare Products, Inc. provides all the requisite pipes, valves and hardware to create an “inwall” source of critical respiratory gasses. Having the plumbing in place makes is much easier to sell add on items like hardware and disposables.

Respiratory Care products include respiratory care/anesthesia products and home respiratory care products. (26% of revenues)

Emergency medical products include respiratory/resuscitation products, and trauma and patient handling products. (21%)

Products are sold to hospitals, hospital equipment dealers, hospital construction contractors, home healthcare dealers and emergency medical products dealers, among others.

Allied Healthcare Product’s net sales to foreign markets total 23% of the total.  Most of the time products are exported from manufacturing facilities in St Louis and billed in US dollars.  This means AHPI has well below average exposure to currency fluctuations.

In House Sales & Marketing

The Company maintains a sales force of 17 sales professionals, all of whom are full-time employees of the Company.

The sales force includes seven domestic hospital, homecare and emergency specialists, four domestic construction specialists, and three international sales representatives. A total of three sales managers lead each of the sales groups.

Sales of respiratory care products are made through distribution channels focusing on hospitals and other sub-acute facilities. Sales of home respiratory care products are made through durable medical equipment dealers through telemarketing, and by contract sales with national chains.

International sales are made through a network of dealers, agents and U.S. exporters who distribute products throughout the world.

Allied Healthcare Products, Inc. key brands include Timeter, Carbolime, Litholyme, Schuco, Chemetron, Oxequip and Lif-O-Gen.

Home Made Products

Allied Healthcare Products, Inc. is more than just a marketing and sales organization. To restate our Small Cap Post thesis, AHPI (NASDAQ: AHPI) has the right mixture of expertise, capital, and business model to establish its own market leadership and be the next breakthrough.

They are a time-tested design, manufacturing, market and sales company.

AHPI got its start during the depression making gas large bulky gas cylinders for hospitals.  The need for mobility lead to the formation of Chemetron Medical Products division that became the pioneer in piped medical gases and vacuums to hospitals that has formed the backbone of the company since 1947.  Innovation is part of the company’s DNA.



We would be overlooking the obvious if there were no mention of the overall appeal of the healthcare market especially here at home. The United States spends more per capita on healthcare than any other country.  In recent years there has been little price inflation in most sectors of the US economy.  Healthcare is an exception. Pricing flexibility is a valuable asset we at Small Cap Post  look for in finding winning opportunities for investors.

In spite of the enactment of The Affordable Care Act in 2013, healthcare price inflation continues at a pace well above the general average.  This is not likely to change anytime soon.

The Global Market For Respiratory Care

According to Global Industry Analysts, Inc, the worldwide market for Respiratory Care Equipment and Supplies is forecast to grow about 3% annually reaching $21+ billion by the year 2020. Growth is expected to be driven by the rising prevalence of major respiratory disorders such as COPE and OSA, growing patient awareness and access to healthcare infrastructure. Technological and design innovation will play a big role as well.

In other words, the market is receptive to companies that can build a better mousetrap.  Makers are continuously offered the opportunity of creating product breakthroughs such as lighter weight, improved ease of use, new applications for example are able to expand their business.

The United States

The US represents the largest market helped by the aging of the baby boomer population where each day 10,000 people turn 65 years old.  The impact of The Affordable Care Act is providing access to respiratory care to more of the population.


Europe appears to be the slowest growing region due to a generally stable indigenous population.  This may change over time given the gulf of immigrants recently streaming into the area.  A long history of government healthcare provided to the masses indicates a high level of market penetration.

The Asian Challenges

The Asia-Pacific region is the fastest growing driven by the massive population base and the environmental health issues created by rapid industrialization through the use of coal and other pollutants.

Asia offers enormous opportunities as quality medical care reaches a greater share of the population. It is a gold mine for providers of respiratory care products and services.  The evolution of the market is likely to favor companies like Allied that offer everything from the construction level plumbing to patient applications.

Formidable challenges are also lurking because of respiratory infections unique to Asia that highlight the important diagnostic and management issues faced by practicing physicians.

Asia is a region with vastly different cultures, and populations affected by a wide spectrum of respiratory diseases caused by tropical pathogens. According to the National Institute of Health, Asian patients with community-acquired pneumonia differ from their Western counterparts in microbiological aetiology, Mycobacterium tuberculosis, Burkholderia pseudomallei and Staphylococcus aureus.

In addition, the differences in socioeconomic and health-care infrastructures limit the usefulness of Western management guidelines for pneumonia in Asia. The importance of emerging infectious diseases such as severe acute respiratory syndrome and avian influenza infection remain as close concerns.

These considerations present the greatest challenges providers of various gases and the high technology products that are programmed based on Western standards and whose cost may not be attractive in Asian markets.

The Market for Ambulance and Emergency Equipment*

The global market for ambulance and emergency medical services (EMS) equipment reached $5.9 billion in 2013. At a 2.9% compound annual growth rate (CAGR) from 2013 to 2018, this market is expected to rise to $6.8 billion in 2018.

In all likelihood, this understates market size since the use of safety and emergency equipment deployed at industrial job sites following the 2013 BP oil rig disaster are outside the traditional universe of first responders.  In addition the potential equipment used for mass causality applications is almost impossible to accurately gauge.

Striker EMS appears to be one of the major players.  In February 2016 Striker acquired Phisio-Control a maker of equipment like defibrillators and heart monitors for use by paramedics and the military.  Nevertheless, it is a market where Allied has some of it’s biggest opportunities.

* Source: bcc Research/

unit1Allied Heathcare Products, Inc.Respiratory Care Products

Respiratory care products are used in the treatment of acute and chronic respiratory disorders such as asthma, emphysema, bronchitis and pneumonia. AHPI manufactures and sells a broad range of products under the respected Timeter, Carbolime and Litholyme brands for use in respiratory care and anesthesia delivery, including carbon dioxide absorbents.

In this area Allied Healthcare Products, Inc. (NASDAQ: AHPI) covers the waterfront including large volume air compressors, calibration equipment, humidifiers, croup tents, equipment dryers and a complete line of respiratory disposable products such as oxygen tubing, facemasks, cannulas and ventilator circuits. To appreciate the scope of products, it helps to have a degree medical engineering.

Home respiratory care needs vary widely. Allied Healthcare Products, Inc. broad line of Timeter, B&F and Schuco home respiratory care products include aluminum oxygen cylinders, oxygen regulators, pneumatic nebulizers, portable suction equipment and a full line of respiratory disposable products.

Medical Gas Equipment

The Medical Gas Equipment segment is Allied Healthcare Product’s bread and butter. It is broken down into three separate categories: construction products, regulation devices and suction equipment, and disposable cylinders.

Our research at Small Cap Post focused on this division showed that AHPI has the right mixture of expertise, capital, and business model to establish its own market leadership and be the next breakthrough.

Construction Products.

Typically, the contractor for the facility’s construction or renovation purchases medical gas system components from manufacturers and ensures that the design specifications of the health care facility are met.

Allied Healthcare Product’s medical gas system construction products consist of in-wall medical system components, central station pumps and compressors, and headwalls. Each system is designed specifically for a given hospital or facility, which purchases pumps and compressors from suppliers.

AHPI holds a significant share of the U.S. market for its construction products. These products are installed in more than 3000 US hospitals.

The installed base of equipment in sets up the opportunity to generate follow-on sales. The Company’s sales of pumps and compressors are driven, in large part, by its share of the in-wall components market.

Regulation Devices and Suction Equipment.

Allied Healthcare Products, Inc. believes that it holds a significant share of the U.S. market in both regulation devices and suction equipment.  Hospitals and sub-acute care facilities are the biggest customers.

AHPI installed base of 3000 hospital “in wall” gas systems represent repeat customers for the flowmeters, vacuum and pressure regulators and all the fittings and attachments that measure patient condition in operating theaters, hospital and intensive care units.

Portable suction equipment is typically used when in-wall suction is not available or when medical protocol specifically requires portable suction. The Company also manufactures disposable suction canisters, which are clear containers used to collect the fluids suctioned by in-wall or portable suction systems. The containers have volume calibrations, which allow the medical practitioner to measure the volume of fluids suctioned.

Disposable Cylinders

Disposable oxygen cylinders are designed to provide oxygen for short periods of time in emergency situations. These are much lighter and less expensive than standard gas cylinders. Customers can be found anywhere that requires oxygen infrequently like first aid providers, restaurants or industrial plants.

 Emergency Medical Products

AHPI’s emergency medical products provide patient resuscitation or ventilation during cardiopulmonary resuscitation or respiratory distress as well as immobilization and treatment for burns.

Sales of emergency medical products are made through specialized emergency medical products distributors to ambulance companies, fire departments and emergency medical systems volunteer organizations.

Respiratory/Resuscitation Products. AHPI’s respiratory/resuscitation products include demand resuscitation valves, portable resuscitation systems, bag masks and related products, emergency transport ventilators, precision oxygen regulators, and humidifiers.

AHPI also markets a full line of disposable and reusable bag mask resuscitators, which are available in a variety of adult and child-size configurations. Disposable mouth-to-mask resuscitation systems have the added advantage of reducing the risk of transmission of communicable diseases.

Trauma and Patient Handling Products

The Company’s trauma and patient handling products include spine immobilization products, pneumatic anti-shock garments and trauma burn kits. Spine immobilization products include a backboard that is designed for safe immobilization of injury victims and provides a durable and cost effective means of emergency patient transportation and extrication.

New Products, Research and Patents

Allied Healthcare Products, Inc. research and development group is responsible for new products. This group is fully staffed with mechanical and electrical engineers. During fiscal year 2015 these efforts lead to the launch of more than a dozen new or improved versions of existing products. Here is a group of the most significant.

AHP 300 and AHP 300P Ventilators

The AHP300 is a broad featured ventilator. It provides all modes of critical care ventilation and uses a single panel interface. Five quick-start programmable presets allow the responder to typically start ventilation in less than 30 seconds.  The primary buyers are EMS and other first responders.  The unit lists for approximately $5,300 and received much attention at the EMS Expo 2016.  The company has applied for US and foreign patents.

Lif-O-Gen® Emergency Portable Oxygen Kits Refillable and Disposable

Lid-O-Gen is offered in two separate systems: Automated Wall Mount Oxygen or Disposable Portable Kits.  The products are marketed for use in office spaces, factories, malls, at swimming pools, or in the home. Each cylinder contains 30-45 minutes of oxygen treatment. With these products, Allied is extending its reach beyond traditional buyers of emergency oxygen. Lif-O-Gen is one of those make sense products when considering the 65+age population and their tendency to be more active than previous generations.

S6000 Medical Air Compressor 50 psi High Volume Nebulization Compressor

Compact and quiet, the Schuco® S6000 Medical Air Compressor provides up to 14 lpm continuous airflow at 50 psi. The S6000 is compact, with a footprint 20% smaller than other compressors weighting just 17 lbs.


Litholyme is a new carbon dioxide absorbent for medical use that eliminates the common concerns with traditional soda lime based products in that it eliminates the potential for production of compound A, carbon monoxide, and excessive heat. Its patented formula does not contain any NaOH or KOH. Suitable for low flow applications, Litholyme is minimally exothermic, and its patented formula does not interact with sevoflurane or other commonly used inhalation anesthetic agents.

Schuco® Twist-Lock HD Collection Canister

The single patient use collection canister features a convenient twist-off lid that can be effortlessly yet securely attached and removed without the potential for leaking or cracking that can occur with a snap-on lid.

Click-It Flowmeters

These two products are designed for use with hospital and EMS oxygen and air delivery systems where a precisely metered supply of gas is required. Click-It flowmeters offer a wide range of highly accurate flow rates.

Chemetron Vacuum Traps

Three new product models help safeguard vacuum regulators, wall outlets and the central vacuum system from accidental contamination from canister overflows. A mechanical float that cuts off suction in the event of a canister overflow accomplishes this.


The medical products industry in a broadly defined sense is bifurcated with a few companies generating large volumes of sale. A few big names include GE Healthcare, Philips, and Becton Dickenson.

Otherwise there are as many as 6500 players focused on specialty products sold to a variety of verticals such as hospitals, firefighting and rescue, or industries such as oil and gas, chemicals etc. Allied Heathcare Products, Inc. (NASDAQ: AHPI) is focused entirely on healthcare institutions and related emergency services. Even companies as large and well financed as GE do not offer Allied Healthcare Products construction products and services.

This industry highly fragmented nature and perennial need for growth capital raises the possibility of enormous consolidation within the ranks of the numerous smaller companies.

Competitors Respiratory Care Equipment and Supplies

 Bio-Med Devices, Inc.

This closely held Gilford Ct based company manufacturers of Transport Ventilators/Air/Oxygen Blenders/MRI Ventilators using the Bio-Med tradmark.  They offer competition against Allied’s new AHP300 and AHP 300P

CareFusion Corp. (NYSE: CFN)

CFN is a diversified $3.8 billion health tech company.  It participates in respiratory and anesthesiology with two products. AirLife disposable ventilator circuits and oxygen masks used for providing respiratory therapy; Vital Signs single-use consumables for respiratory care and anesthesiology. Recently, CareFusion acquired the Clinical Consumables business of GE.

 CAIRE, Inc.

This closely held company competes directly with Inogen in the battle for portable oxygen customers.  CAIRE appears to have effectively bracketed the market with three products to fit different customer lifestyles. These include:

Air Step portable oxygen from 1.75 lbs to over 6 lbs depending in battery life.

SeaQual Travel oxygen ranging from 14lbs to 18 lbs.

Caire and AirStep home oxygen at 36lbs.

Inogen (INGN)

This Goleta California base company specializes in lightweight (2.8 lbs.) portable oxygen under the Inogen and Inogen One brands.  Products are priced between $2000-$2500 and can be rented from the company.

Compumedics Ltd. (CMP.AX)

The company has a strong medical technology presence that so far has focused on the so-called sleep medicine market.  At some point Allied could be an interesting partner for Compumedics to gain greater access to the hospital market. Both companies are similar in revenues.

Draeger Medical AG (ETR: DRW3)

Medical Products Division

The Draeger brand is applied to anesthesia workstations, ventilators for intensive and emergency care, patient monitoring devices and devices for medical care for premature and newborn babies. With ceiling supply units, IT solutions for the OR and gas management systems.

Draeger competes closely with Allied and the two have had their share of legal battles over patent issues. In addition to hospital and EMS markets, Drager also serves the following areas: Firefighting, Mining, Oil & Gas and the Chemical industry.

Fisher & Paykel Healthcare Corp Ltd.

Based in New Zealand F&P products are sold in over 120 countries with limited overlap with Allied.  Categories include:

 Respiratory Humidifiers: single-use and reusable chambers and breathing circuits and accessories.

Continuous Positive Airway Products (CPAP) The principal market for these products is in the treatment of obstructive sleep apnea.

 GE Healthcare (NYSE:GE)

Healthcare represents a paltry 12% of parent company revenues and profits. Nevertheless, it has been one of Chairman Jeffery Imelt favorite areas for many years and the company is dedicated to excellence. Within the healthcare mix, GE competes in 30 separate categories overlapping Allied in just two. Never the less they represent some of the best in the industry.


Carescape R860

 Anesthesia Delivery

Carestation 600 Series

Aisys CS2

Avance CS2 with ecoFLOW


Hamilton Medical AG

 Swiss based, Hamilton Medical AG designs and manufactures intelligent microprocessor-controlled intensive care ventilators.  Their distribution stronghold is in Europe.

INTELLiVENT-ASV, a closed-loop ventilation solution that provides automated adjustment of oxygenation and ventilation;

HAMILTON-C1, an intensive care ventilator;

HAMILTON-C2 that provides respiratory support to neonates, through adults; HAMILTON-C3, which offers ventilation support to adult and pediatric patients in t HAMILTON-T1, a ventilation solution for the mobile ICU; and

HAMILTON-MR1  provides  support to adult or pediatric ICU patients.

HAMILTON-S1, a ventilator that provides  automated control of the patient ventilation and oxygenation

Philips Healthcare (BIT: PHIA)

Giant company whose Healthcare includes Ultrasound, software, minimally invasive surgery, patient care imaging.  It’s emergency care products sell into the same vertical as Allied but consist of things like defibrillators and data management systems.

Risks and Uncertainties

 Profitable Competitive Strategy

The medical device industry is well known for disruptive technology, changing customer needs and frequent new product introductions. Existing AHPI’s products may be rendered obsolete as a result. Allied Healthcare Products, Inc. must be vigilant of their larger better-financed industry members and willing to invest the necessary capital for new and updated products. Even if we are able to compete successfully, they may not be able to do so in a profitable manner.

The Effects of Third Party Reimbursement

Third party payers like Medicare, Medicaid or private insurance companies historically have not directly affected AHPI.  However, buyers of their products are. In addition, under terms of The Affordable Care Act, medical device manufacturers must pay a 2.3% tax.  Imposition began in 2013 and continued until December 18, 2015.  At that time a two-year moratorium was enacted that will extend through December 31, 2017.

Future changes in healthcare taxes of reimbursement are unpredictable and could affect customer demand.

 Regulatory Issues including FDA certification of manufacturing

The Medical Device Division of the US Food & Drug Administration governs the company’s ability to market existing and new products.

After a lengthy review of these risks, we at Small Cap Post concluded that none of these items noted is unique to Allied Healthcare Products, Inc., rather they are faced by most all industry participants.

 Income Statement Analysis

Over the past three years, AHPI’s revenues have hovered around the $36 million mark with each of the three sectors providing continuing stability to the revenue base.  This means the strategy of driving sales starts with construction products is resulting in repeat business in respiratory hardware and disposables.

Two things stand out in the 2016 income statement.  The company has actively developed and marketed an abundance of new and upgraded products.  This keeps products technologically abreast but has not resulted in growth.

Allied Heathcare Products, Inc. is not profitable and has not been for over three years.  This limits the amount of capital available for research and product development that might allow Allied to enter larger and more lucrative markets.

The company’s strong customer relationship with over 3000 US hospitals is a valuable asset that is under utilized given Allied limited flexibility.

There is absolutely no doubt, Allied Healthcare Products, Inc. would be stronger having a partner that could leverage AHPI’s many assets.

Allied Healthcare Products, Inc.

Statement of Sales & Earnings


Year ended June 30th   2016     2015     2014
Net sales $ 35,952 $ 35,462 $ 36,371
Gross profit 7,359 7,070 7,314
SG&A Expenses 9,279 8,763 10,423
Loss from operations (1,920 ) (1,693 ) (3,109)
Loss before (benefit) income taxes (2,004 ) (1,760 ) (3,146)
(Benefit from) income taxes 301 17 (340)
Net loss $ (2,305 ) $ (1,777 ) $ (2,806)
Basic loss per share $ (0.29 ) $ (0.22 ) $ (0.35)
Diluted loss per share $ (0.29 ) $ (0.22 ) $ (0.35)
Basic average common shares out. 4,027 4,027 4,027
Diluted average common shares out. 4,027 4,027 4,027

Balance Sheet Analysis

We at Small Cap Post are constantly looking for investments that have the potential to score major gains for people just like you.  Very often the secrets to a company’s hidden values can be found by digging into the balance sheet.  The latest ALLIED HEALTHCARE PRODUCTS INC. (NASDAQ: AHPI) report was released just a few weeks back and our review produced some eye opening moments.

 Even with the operating losses in recent years, AHPI has a fortress for a balance sheet. They have absolutely no long-term debt and this is quite unusual. Over half of their $23 million in assets is in cash, accounts receivables and inventory. Assets are almost 5 times total Liabilities.  This means the company is highly liquid, a feature that is important to any potential partner of buyer.

What makes Allied Healthcare Products, Inc. especially attractive is that Shareholder Equity of $18,272,455 equals $2.28 per fully diluted common share?  The public share price is less than one half this price.  By any value investor definition, this is a super value opportunity.

The times where you have the opportunity to possibly double, triple or even quadruple your money are rare and we believe that you should carefully consider AHPI.

Allied Healthcare Products, Inc.

Balance Sheet




June 30, 2016 June 30, 2015
Current assets:
Cash and equivalents $ 1,703,663 $ 2,039,946
Accounts receivable, net 4,094,462 3,574,674
Inventories, net 8,875,270 9,190,911
Income tax receivable 12,555 12,487
Other current assets 255,711 328,756
Total current assets 14,941,661 15,146,774
Property, plant and equipment, net 6,747,570 7,821,206
Deferred income taxes 1,430,385 1,889,872
Other assets, net 76,065 131,615
Total assets $ 23,195,681 $ 24,989,467
Current liabilities:
Accounts payable $ 1,864,603 $ 1,368,797
Other accrued liabilities 2,341,203 2,159,566
Deferred income taxes 717,420 767,907
Total current liabilities 4,923,226 4,296,270
Stockholders’ equity:
Common stock; $0.01 par value;


104,279 104,279
Additional paid-in capital 48,430,759 48,546,670
Accumulated deficit (9,281,795 ) (6,976,964 )
Less: treasury stock (20,980,788 ) (20,980,788 )
   Total stockholders’ equity 18,272,455 20,693,197
   Total liabilities and SE $ 23,195,681 $ 24,989,467


Management Analysis

John D. Weil, (age: 75) Chairman of the Board

John Weil serves as the outside Chairman of the Company. He is the largest shareholder with 39.8% of the outstanding shares. Between the Chairman and the President rests almost 45% of the voting shares.  This means two people control the company, both in their twilight years.

Of equal importance, Mr. Weil is a pure investor and that means his interests are in achieving a good return on investment. So far, as an independent company, Mr. Weil is under water.  Here are several of his other board memberships. As you can plainly see, his history is steeped in financial services and that is solid proof that his mind set is in money.

Mr. Weil has been President of the private investment company, Clayton Management Co., since 1973 and was a director of Baldwin & Lyons, Inc., a publicly traded insurance company until May, 2015. Mr. Weil was also a member of the Board of Directors of Pico Holdings, Inc. from 1996 until August 2010 and a member of the board of directors of Highbury Financial Inc. from 2009 until that company was sold in April 2010.

Earl R. Refsland (age: 73) President and CEO

Earl Refsland has served in his present capacity since September 1999. Mr. Refsland previously served as Chief Executive Officer and member of the Board of Directors of Allied Healthcare Products, Inc. from 1986 to 1993.

Mr. Refsland brings to the board of directors nearly thirty years of experience in the medical industry, including twenty-three years as the Chief Executive Officer of Allied Healthcare Products, Inc.

Quoting from the 2016 Proxy statement, “The Board believes that Mr. Refsland’s medical industry experience, executive experience, and extensive experience in all disciplines of business and manufacturing make him a desirable member of the Board.”

During the past decade company revenues have slipped 36% while earnings were negative in 70% of those years.  Apparently the Board believes the without Mr. Refsland, things would have been much worse.

Other than Allied Heathcare Products (NASDAQ: AHPI), Mr. Refsland tenure elsewhere has been notably brief.  From February 1999 to January 2000, Mr. Refsland served as Director and Chairman of the Board of Andros Technologies. From May 1995 to March 1998, Mr. Refsland served as President and CEO of Photometrics Limited.

Daniel C. Dunn (age: 56)

Vice President, CFO, Secretary & Treasurer

Daniel has held this position since July 2001. Mr. Dunn held the position of Corporate Controller at Allied Healthcare Products, Inc. from 1994 to 1998.

He previously held the position of Director of Finance at MetalTek International from 1998 to 2001. Like Mr. Refsland, Daniel’s tenure outside of Allied has been brief.

Andrew D. Riley (age: 39) Vice President-Operations

Andrew has held this position since July 2014. He previously held the position of Director of Operations and Plant Manager from January 2012 to July 2014.

Outside Holders Could Help Cause Change

Wells Fargo & Co., Dimensional Fund Advisors, Oppenheimer & Close Inc, Goldman Sachs Group. and Vanguard Group to just name a few are all Institutional and Mutual Fund owners of (NASDAQ: AHPI).  We consider these to be instigators of change at Allied Heathcare Products.  Where else can you find a NASDAQ listed Company, virtually debt free, trading at tiny multiples, poised for a BIG MOVE with Institutional Investors and Mutual Funds – these two categories of investors own 29.6% of the Shares issued and outstanding.  This amounts to a whopping 53.23% of the entire float which at 6.1m shares is tiny

Between 45% of the stock owned by two aging executives, one of which is purely an investor and 19.3% owned by two outside investors, there is a very good possibility the status quo at Allied Healthcare Products Inc. will not remain this way for much longer.

Who might be interested in a partner like AHPI?  Remember there are 6500 othercompanies in the medical device business, both large and small. Since the company is debt free, an acquiring company could use AHPI’s very own assets as collateral. It is pretty much a no brainer to finance.

We are in no way suggesting we have any sort of insider knowledge.  That is neither legal nor our modus operandi.  What we have is an opportunity that doesn’t come along every day.

Allied Healthcare Products, Inc. Shares Owned


Percent of

Outstanding Shares

Directors and Executive Officers
Earl R. Refsland

Director and Chief Executive Officer

372,859 4.6 %
John D. Weil

Chairman of the Board of Directors

3,201,165 (2) 39.8 %
All directors and executive officers as a group (6 persons) 3,646,330 45.0 %



Conclusion: The Value Proposition

Now, here is the value to consider.  The stock is thinly traded. There are just over 8 million shares outstanding. Between insiders and 13D holders, there are less than three million shares floating. A little push can make for a big price change.

The stock was last traded at around the $2.00 level.  The book value is way up at $4.56 per share, well over double the last sale price.  It would be impossible to envision the company worth less than book value.

The times where you have the opportunity to possibly double triple or even quadruple your money are rare and we believe that you should carefully consider Allied Heathcare Products (NASDAQ: AHPI).