STDS selected as Stock of the Month by Penny Stock Picks:
pennystockpicks.com
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PennyStockPicks.Com, LLC has been specializing in Internet-related
companies in 1999. Our last seven stock picks have produced an average gain
of over 200% (highest price after profile)! As we approach the new
millennium, there is one news item that continues to dominate the world
scene: the growth of the Internet. Many experts now agree that the Internet
is fundamentally changing the world in ways that were not even contemplated
5 years ago. Jane M. Freedman, a well respected and highly credible
security analyst of Public Analysis Review (PAR), has just released a very
favorable research article
(http://www.investrend.com/research/stdsreport.html), dated June 24, 1999
on our July Stock-of-the-Month and issued the stock a "Buy Rating". This
report highlights the valuation and outlook of our featured company and the
impact that the Internet has on the
Company's business plan. Our feature story presents an established company
that has been in business for many years and is now poised in capitalizing
in this exposive industry. We now present to you:
Our feature "Stock-of-the-Month" for July 1999:
Scottsdale Scientific, Inc.
(OTC BB: STDS)
Bid - Ask: $1 15/64 - 1 11/32 (June 25, 1999)
Significant Newsbreak
PAR Analyst Announces BUY Recommendation on Scottsdale
Scientific (OTC BB: STDS)!
Late Breaking News
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--June 24, 1999-- Scottsdale
Scientific, Inc. (OTC BB: STDS), through its wholly-owned subsidiary
NutriCology Inc., Thursday announced that Public Analysis Review (PAR)
Analyst, Jane M. Freedman, issues investment opinion on the company with a
"Buy Rating", establishing an 18 - 24 month target price of $3.00 - $4.00.
A complete copy of this research report can be obtained at PAR's
web site at investrend.com.
Company Profile
Scottsdale Scientific Inc. (OTC BB: STDS), headquartered in Hayward, CA, is
a multi-national company with expertise in research and the formulation of
nutritional supplements. It is a wholesale distributor of health and
nutritional supplements. Through its wholly-owned subsidiary, NutriCology
Inc./Allergy Research Group, is an innovative and pioneered leader in
nutraceutical research and formulation of nutritional and life
enhancement supplements. Since 1979, NutriCology, Inc. is recognized
worldwide and noted for the quality, purity, and efficacy of its
hypoallergenic nutritional supplement line of products. As a significant
note not to overlook, the Company now has approximately 6,000 physicians
and health care practitioners worldwide who purchase and recommend the
products to their
patients. Last year, the Company relocated to a 25,000 sq-ft
state-of-the-art facility that is now capable of handling an increased
amount of sales and anticipated growth as the Company introduces its
products through the Internet.
These significant achievements have led the Company to become able to
compete on a multi-national level and positioned to profit in the $92
billion annual Nutraceutical market. This established company is now
undertaking important initiatives to increase revenues and earnings rapidly
over the next few years. Included in these phases is capacity expansion and
establishment
of new distribution channels such as the Internet, which is designed to
create a strong presence in the domestic and international markets. The
Company has already tapped into a multi-billion European market with orders
coming from Singapore, Japan, Australia, New Zealand, the United Kingdom,
Germany, and Brazil. Scottsdale is in the process of developing and
introducing products aimed at an estimated 58.7 million Americans as well.
About the Company
Scottsdale Scientific has over 250 nutritional products available with
sales provided through three distinguished multiple distribution channels:
1. Allergy Research Group focuses its sales to the professionals such as
Physicians, Nutritionists, Chiropractors and health care professionals.
Allergy Research Group was the first in the U.S. to introduce numerous
specialty products including melatonin, a neurohormone, germanium
sesquioxide (a trace mineral), AntiOxTM, a broad-spectrum antioxidant,
Buffered Vitamin C and the Total Nutrient Concept. (Includes all in one,
proprietary formulas, Total ImmuneTM, Total NerveTM and Total HeartTM).
Click here (http://www.nutricology.com/proddesc/index.htm) for a complete
line of company products.
2. NutriCology, Inc. directs both wholesale and retail sales to health food
stores and through direct catalog sales.
3. A third distribution route is taken through private labeling to other
health and wellness companies. The Company supplies a 50 page catalog with
full descriptions of nutritional supplements.
The Company is now expanding beyond its core market to tap markets
internationally and penetrate the domestic market
through the internet and other retail distribution systems. Currently and
significantly, the Company is in the next stage of
development with its e-commerce web site.
Industry Analysis
- The nutritional supplement market is a rapidly growing sector of the
health and wellness market with an annual growth rate of 20 - 30%.
- Nutraceuticals are a $92 Billion annual business (Nutrition Business
Journal, Dec. 1998).
- 113 million Baby Boomers alone, spend billions annually on their health.
- Amazing projected growth in Online Sales of Nutritional Supplements and
natural products in the nutrition industry as
described in the Nutrition Business Journal:
$12 million in 1997
$40 million in 1998
$160 million projected for 1999
Over $500 million by 2001
- The majority of the world's population use alternative medicine as their
primary source of medical care.
- Rapid increase in number of doctors recommending antioxidants and other
nutritional supplements.
- HMO's, such as Kaiser Permanente and Oxford Health, have initiated
programs of reimbursement for alternative healthcare in order to reduce
costs and improve patient quality of life.
Independent Analyst's Evaluation
It should be noted that two independent research firms have evaluated the
Company with a "Buy Rating".
1.) Public Analysis Review (PAR) Analyst, Jane M. Freedman, issues
investment opinion on the Company with a "Buy Rating", establishing an 18 -
24 month target price of $3.00 - $4.00. Ms. Freeman is a security analyst
as well as a supervisory analyst, and a member of the New York Society of
Security Analysts with over 15 years of experience. She has been an analyst
with Bear Stearns & Co., Inc., Kidder Peabody & Co., Phillips, Appel &
Walden & Co., Inc., and J.W. Charles/CSG. Her firm, J. Freedman &
Associates is located in Miami, Fl.
2.) Gilbert & Chatterton initiated coverage of the Company last April with
a Buy recommendation at $3.50, significantly above current price levels.
Since then, the Company has had a year of positive corporate developments
and new product line introductions.
Financial Projections and Analysis
Below are financial projections and analysis as provided in the PAR report
dated June 24, 1999 (distributed by Investrend
Research), and from Company management. The complete PAR report can be
obtained on the PAR's web site at investrend.com. This report
was provided to PennyStockPicks.Com, LLC and was used with permission from
the Company. As noted in the table below, management projects a 25%
internal growth rate with the successful development and launching of 10
new products annually. A target price has been set of about $3 to $4 a
share within the next 18 to 24 months. The basis of their target price is
the exploitation of the demographics of an aging population. The marketing
of the Company products on the Internet and the demand for alternative
medicine for the specific disease management uncovered by the
pharmaceutical companies, places Scottsdale Scientific in the limelight.
Estimated Earnings Per Share (EPS), Price/Earnings Ratio (P/E), Revenues
and Net Income
Fiscal Period 1998 A 1999 E 2000 E 2001 E
Est. Earnings Per Share ($0.08) $0.03 $0.07 $0.08
Est. Price/Earnings Ratio n/a 33.3x 14.3x n/a
Est. Revenues n/a $15 M $20 M $25 M
Est. Net Income n/a $400,000 $1 M $1.25 M
Why Scottsdale Scientific Warrants Investment Consideration
1.) New E-Commerce Marketing Strategy. Company products can now be ordered
online by patients and consumers using the Company's web site. This new
e-commerce marketing strategy through the Internet will propell the sales
of its products. The Company has categorized their products into various
product groups so that consumers and patients can easily select and order
products directly online. Click here
(http://www.nutricology.com/onlinestore/index.htm) to visit this easy to
use order form.
2.) Revenue Growth Potential. The Company has a specific business plan
which focuses on increasing its revenue growth potential through sources
such as:
- New distribution channels: Allergy Research Group, NutriCology, Inc., and
Private Labeling.
- Expansion through the Internet, which is intended to reach domestic and
international markets.
3.) Favorable Recommendations by Credible Analysts. Two independent
research firms have evaluated the Company with a "Buy Rating" and with
target prices of $3 to $4.
4.) Solid Company Fundamentals. Scottsdale Scientific has made significant
achievements that mark the Company as being poised to compete on a
multi-national level and position itself for profitibility. It is also
taking important initiatives to
increase revenues and earnings rapidly over the next few years, which
substantiate the fundamentals of a potentially
successful company.
5.) Key Management Team. The Company's key team has the potential to create
a successful company that is capable of achieving outstanding growth in the
future.
6.) Launching of a National Advertising and Promotion Campaign. Scottsdale
Scientific will advertise on a national level through the Internet, public
relations and publicity programs.
Key Management
The Company has assembled a very distinguishable and knowledgeable team of
researchers/specialists in biochemistry and
nutrition, a financial specialist, marketing specialists and strategists,
an engineer/computer scientist, and other industry leaders. These key
managers have a broad range of experience and skills related to the
Company's plan of operation. The primary goal of the present management
team is to position the Company on a multi-national level in the
Nutraceutical market and lead the
Company to profitibility. Click here
(http://www.pennystockpicks.com/stds-bios.html) for a brief description of
key management and their biographies.
Stephen Levine, Ph.D. - Chairman and Founder of the Company
Marianne Sum - President and Chief Executive Officer
Joseph Feller - Chief Operating Officer
Ed Lau - General Manager
Clinton Abbott - Marketing and Sales Manager
Corporate Financials
Company Name Scottsdale Scientific, Inc.
Exchange Listed OTC BB: STDS
Issued & Outstanding Shares ~ 15.3 million
Public Float ~ 5 million
Market Capitalization ~ $16 million
52-week Price $0.91 (low) - $4.06 (high)
Recent Price (June 25, 1999) $1 15/64 (bid) - $1 11/32 (ask)
Recommendation BUY
Target Price (18 - 24 months) $3 to $4
Industry Nutrition Supplement
Specialty Nutraceuticals
Web Site nutricology.com
Recent Press Releases
Click here (http://biz.yahoo.com/n/s/stds.html) to view recent company
press releases on Yahoo! Finance.
6/24/99 Scottsdale Scientific Announces PAR Analyst, Jane M. Freedman,
Initiates Coverage with Buy Recommendation
6/22/99 Scottsdale Scientific Signs Agreement with Bergen Brunswig
Corporation
5/17/99 Scottsdale Scientific Announces Prestigious Invitation to the 10th
International Congress of Medical Results on
Ortho-Biomolecular, Nutrition and Functional Medicine
5/05/99 Scottsdale Scientific Receives Approval From Bindley Western
Industries to Service Their Customer Base
4/29/99 Scottsdale Scientific Files Form 10SB to Become a Fully Reporting
Company
4/27/99 Scottsdale Scientific Announces ProBalance, a Multivitamin Powder
Formula Designed to Support Children That are
ADD or ADHD Challenged
4/20/99 Scottsdale Scientific Donates Nutritional Supplements to Refugees
in Kosovo
4/12/99 Investors Research Institute Inc. Announces Investment Opinion on
Scottsdale Scientific
4/12/99 Scottsdale Scientific to Redesign Corporate Web Site with Focus on
eCommerce Sales and Content
4/09/99 Scottsdale Scientific Engages the Services of Business Financial
Network -- bizfn.com
Recent and Future Media Coverage
A coordinated media blitz will occur for the Company and plans are on-going
to increase investor & public awareness and the
potential of their business on a national level using an intense Internet
program through independent analyst reports, corporate
press releases, and specialized research reports on financial web sites
(including hyperlinks and advertisement).
We invite our subscribers to a corporate presentation audio that was
recorded by StockConference.com, which is located at
stockconference.com. In order to hear this
audio, you must have the newest version of RealPlayer
Plus G2. Click here
(http://www.real.com/products/player/index.html?src=downloadr) to download
the newest version.
Technical Analysis
Based on the technical position and future business plan of Scottsdale
Scientific, we believe the stock price has the potential to appreciate to
exciting levels in the very near future. Its 52-week price range is $0.91
(low) - $4.06 (high). As shown in the technical chart
(http://www.pennystockpicks.com.com/stds-chart1.gif), the current stock
price is trading at all time lows. In the recent months, microcap stocks
have performed poorly. This factor alone could have been responsible for
the decline in the recent trading pattern. However, we tend to feel that
due to the stock's low float (representing the potential for high
volatility), it
will only take a small amount of selling to cause this decline. This
reasoning is shown in the stochastics oscillator at the bottom of this
chart, whereby the oscillator demonstrates that the stock has been in an
oversold condition for the past two months. Now the stock price seems to
have reached a stable base.
Application of further technical analysis confirms this interpretation, as
shown in a more detailed chart
(http://www.pennystockpicks.com/stds-chart2.html). Significant
indicators/oscillators displayed in this chart support our belief that the
stock is poised for price appreciation. Looking at the
detailed chart, note that the fast line of the MACD "moving average
convergence/divergence" has just crossed over the slow
line, this signals a buy. The accuracy of this indicator is displayed in
previous crossovers. Other indicators such as money flow and momentum
reflect future improvements in stock price.
PennyStockPicks.Com believes the Company fits the profile of being
undiscovered, undervalued, and has potential to perform
well in the third quarter of 1999. We feel the stock is a spectacular
investment opportunity and is currently at a very favorable buying price
considering its short and long-term potential. We agree that the target
prices as set forth by the highly regarded PAR analyst of $3 to $4 are
attainable. However, it is our opinion that the PAR analyst did not take
into full consideration that the impact of the Internet will have on future
sales and growth. If the price appreciates after our profile, new levels of
support may be placed at about $2 per share. Our best judgement of the
short-term (three months) target price is $2 1/2 (~ 100% higher than
today's prices), and a conservative long-term (1 year to 18 months) target
price of $4 1/2 (~ 250% higher).
Conclusion
The Company has the management, innovative products, and industry
reputation to capitalize on industry trends and growth.
Furthermore, Scottsdale Scientific, Inc. has expanded capacity and
established new distribution channels, including the Internet
through its web site nutricology.com that will support
management's aggressive growth plans for accelerating revenues and earnings
over the next few years. These remarkable factors
combined with the fact that the Company is already profitable and
positioned in an explosive industry poised for future growth lead us to
believe in the exciting potential this company offers to investors.
Contacts
Company Headquarters: Investor Relations:
Scottsdale Scientific, Inc. Contact: Wendy Miller-Appleyard
30806 Santana Street Tel: (888) 607-5399
Hayward, California 94544 Fax: (602) 948-8434
Web Site: nutricology.com E-mail: stds@primenet.com
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© 1999 PennyStockPicks.Com, LLC. All materials presented on our web site
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investment risk and volatility. All investors are cautioned that they may
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