AHEAD OF THE STREET
aheadofthestreet.com
September 30, 1999
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Dear Ahead of the Street Subscriber,
As a subscriber to News Wire Broadcast, we are sending you our Ahead of the Street September "Stock of the Month."
Our Ahead of the Street ?Stock of the Month? for September is CancerOption.com, Inc. (OTC BB: CAOP). We delayed the introduction of this exciting new company to you as significant developments have unfolded in recent weeks that have greatly improved the company and its web portal. We want to deliver the best possible companies to our subscribers, even if it means a bit of a delay. We believe you will find CancerOption.com to be one of the most innovative and unique web communities on the Internet. The enormous potential of CancerOption.com presents all of us with an outstanding ground floor opportunity in an explosive market niche. We believe this combination of two explosive sectors, Internet and Health Care, to go along with a stellar management team has the makings of a winner. You will too!
- Ahead of the Street Staff
THE SEPTEMBER STOCK OF THE MONTH
Industry Background
According to the American Cancer Society, cancer is the second leading cause of death in the United States, exceeded only by heart disease. By the turn of the century, cancer will affect one out of every two Americans. This year, about 563,000 Americans are expected to die of cancer, more than 1,500 people a day. In the United States, one of every four deaths is cancer-related. The National Cancer Institute estimates that approximately 8.2 million Americans alive today have a history of cancer. While many of these individuals can be considered in remission, many others are actively seeking treatment. The diagnosis of new cancer cases is expected to be approximately 1.2 million in 1999. Approximately 12 million new cancer cases have been diagnosed since 1990.
Healtheon Corporation reports that 85% of United States physicians are Internet users, a staggering increase of 875% from the number of physicians using the World Wide Web in 1997. However, doctors are not the only ones doing research on the Internet. According to Louis Harris and Associates, 60 million Americans logged on the Internet in search of health and medical information in 1998. For those sixty million people, cancer, depression, allergies, bipolar disorder, arthritis, high blood pressure, migraine and anxiety disorders were the most common ailments requiring investigation. Harris also reported that nearly 75% of seniors use the Internet for referencing health related topics on a regular basis. In addition, approximately 35% of all Internet users access health related information at least once every month.
With 90 million people in the United States and Canada accessing the Web (Nua Survey), the North American market for online health care research stands at over 30 million individuals and the number is growing by leaps and bounds. In a May 1999 survey, Roper Starch found that about 25% of the households in the United States had Internet access versus just 14% in 1997. Even more impressive is the revenue growth produced from those users. According to Activemedia, 1999 sales from personal care and gourmet food portals are anticipated to be ten times what they were in 1998.
Corporate America is making every attempt to capitalize on this incredible growth. By 2000, 56% of U.S. companies will sell their products online versus 24% in 1998 (Financials Executives Institute and Duke University). Jupiter Communications reports that revenues derived from portals are expected to jump from $2.4 billion in 1999 to $8.7 billion in 2002 while total online retail sales are expected to grow from $13 billion to $43.7 billion in the same time period. They also estimate that the total online consumer healthcare market will reach $1.7 billion in 2003.
Our September Ahead Of The Street (http://www.AheadoftheStreet.com) Stock of the Month, CancerOption.com, Inc. (OTC BB: CAOP) is establishing itself as the most comprehensive provider of cancer research, content, products and proprietary protocols on the World Wide Web. As a tremendous resource for both physicians and the general public, CancerOption.com will cater to all walks of life in need of cancer related care, education and services.
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Ahead of the Street?s September pick is CancerOption.com, Inc.
(OTC BB: CAOP)
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Symbol: CAOP OTC Bulletin Board
Recent Price: $3 7/16
Shares Outstanding: 7,366,600
Restricted Shares: 5,000,000
Public Float: 2,366,600
CUSIP: 13738V103
Company Contact Information
CancerOption.com, Inc.
7332 East Butherus Suite 101
Scottsdale, AZ 85260
Website: canceroption.com
Investor Relations
Corinne Wade
Tel: (888) 320-6565
E-mail: caop@canceroption.com
Company Introduction and Background
CancerOption.com is a new online portal consisting of the most specifically targeted cancer related proprietary protocols, content, research and products on the Internet. It is an easy to use, comprehensive network of web sites tailored to the interests and needs of individuals researching cancer and immunological disorders on the World Wide Web. The vertical portal provides common features that make CancerOption.com a functional and user-friendly experience including a newsletter, clinical pearls, links to other health related web sites and a moderated forum to exchange research and provide support.
CancerOption.com's mission is to provide a clear and concise informational stream of content in an effort to educate the general public and physicians on a variety of methods to enhance the immune system as it relates to cancer. Within the CancerOption.com virtual community, forums discussing the latest research findings, clinical trials, traditional and alternative therapies as well as professional forums with oncologists, physicians and healthcare professionals will be available worldwide. The protocols and targeted nutraceuticals, within the CancerOption.com portal, work in conjunction with current traditional cancer therapies.
Through its proprietary protocols, CancerOption.com offers specific, complementary treatments designed to strengthen the immune system and detoxify the body. Each specific protocol includes recommended diet, nutritional supplements, lifestyle maintenance and a post-remission regimen. These treatments work in conjunction with, not replacement of, traditional approaches to enhance the effectiveness of medical cancer treatments such as chemotherapy, radiation, and surgery.
These complementary protocols not only help the immune system?s fight against cancer, they also help reduce side effects of chemotherapy and radiation. The protocol is a broad based program targeted specifically for individual cancers in order to basically make healthy cells healthier. In addition, these protocols can help prevent the risk of getting cancer in the first place. CancerOption.com, Inc. President and CEO, Mr. Arnold Takemoto explains, ?Cancer is an immunological deficient disease, and by maintaining optimum health and an optimum immune system, we are able to keep cancer in control and possibly avoid it.?
CancerOption.com?s comprehensive selection of features is extremely useful for professional, academic and practical applications. A few of these departments will include complete worldwide directories of cancer clinics and physicians specializing in adjunctive cancer therapies as well as web sites and medical universities that offer specific content for educational purposes. Researchers will also have complete access to the latest research and statistics on cancer treatments and immunological disorders including traditional, complementary and alternative methods. CancerOption.com also features a library of books for sale regarding cancer, immunological disorders and general health. In addition, CancerOption.com?s Physicians Only service will allow members of the medical community to obtain detailed cancer related information and research.
Key Management
Management is the most important ingredient in the execution of any business plan, especially this one, and CancerOption.com is stocked with talent. The driving forces behind CancerOption.com provide the credibility, innovation and experience necessary to successfully execute CancerOption.com?s business plan. As the backbone of the proprietary protocols and site content, Arnold Takemoto has assembled a brilliant team of professionals whose profiles are listed below.
Arnold Takemoto, President and Chief Executive Officer
Arnold Takemoto brings to CancerOption.com his unique and innovative approaches to cancer therapies and immunological support. His detailed protocols that he is currently implementing as a chemist, biochemist and nutritionist are the basis of CancerOption?s proprietary content. Mr. Takemoto is a chief consultant to physicians and cancer clinics worldwide and teaches doctors new advances in complementary approaches to advanced cancers. Mr. Takemoto also leads workshops at many international medical conferences as a keynote speaker or guest lecturer. In April 1999, Mr. Takemoto conducted his workshop at the exclusive, invitation only physicians conference, Total Immunity For the Next Millennium.
Mr. Takemoto coordinates clinical studies in adjunctive cancer programs and is an innovator in complementary approaches to heart disease. Mr. Takemoto?s personal mission statement is to provide strong clinical support for cutting edge complementary protocols and to facilitate physicians in their implementation of cancer therapies. This mission statement is the encompassing vision of CancerOption.com.
Mr. Takemoto received his Bachelor of Science in Chemistry from Clarkson College of Technology in Potsdam, New York in 1966. He also compiled medical research on behalf of the University of Vermont Medical School and Medical Center and the University of Colorado Medical Center. Mr. Takemoto completed his studies at Denver University Graduate School under the auspice of a National Science Foundation Research Grant.
Michael Quel, Chief Financial Officer
Michael Quel brings more than 20 years of professional accounting and management expertise to the Company. As CFO, he is responsible for the Company?s financial organization, operations and internal controls, as well as researching all possible acquisitions and developmental stages of CancerOption.com. Prior to joining CancerOption.com, Mr. Quel built a highly successful accounting practice utilizing innovative marketing programs and referrals. Mr. Quel received his degree in Accounting in 1981 from Robert Morris College in Pittsburgh, Pennsylvania and became a Certified Public Accountant in 1983.
Dr. Douglas Brodie, MD, Director
Dr. Brodie has over 25 years of expertise in the fields of both allopathic and complementary cancer therapies. He has also developed several new protocols for the complementary management of cancer as well as a highly specialized program for enhancing the effectiveness of chemotherapy. His research and therapies will supplement and support the protocols of Mr. Arnold Takemoto to create more concise content for those researching cancer therapies.
Dr. Brodie authored the book, Cancer and Common Sense: Combining Science and Nature to Control Cancer. So comprehensive has Dr. Brodie?s research proved, that his book is recognized in the cancer community as the alternative guide to the treatment of cancer and degenerative diseases. Dr. Brodie has also co-authored a portion of the book An Alternative Medicine Definitive Guide to Cancer by Burton Goldberg. He obtained his medical degree from the University of Michigan in 1972. In 1983, Dr. Brodie was appointed by Governor Richard Bryan to serve on the State Board of Homeopathic Medical Examiners for the State of Nevada.
Scientific Advisory Board
Dr. James Privitera, M.D.
Dr. James Privitera was the first medical professional to be appointed to CancerOption.com?s Scientific Advisory Board. He earned his medical degree from Creighton University and completed his internship in Internal Medicine at Providence Hospital in Seattle, Washington. Following a clinical fellowship in Allergy, Immunology and Rheumatology at Scripps Clinic in La Jolla, CA, Dr. Privitera entered into private practice in Covina, California. Dr. Privitera has served on the board of several top health organizations, including the National Health Federation.
Dr. Joseph Brenner, M.D.
Dr. Brenner brings a rare combination of expertise to CancerOption.com?s Scientific Advisory Board. Dr. Brenner is head of Oncology at Wolfson Hospital, Holon, Israel and a graduate of Tel Aviv University Medical School. He has completed the following fellowships: Internal Medicine and Oncology at Sheba Medical Center, Israel; Radiation Oncology at Rhode Island Hospital, Providence, Rhode Island, USA; Medical Oncology at Memorial Sloan-Kettering, New York, New York, USA. Dr. Brenner?s credentials further extend to course certification in nutrition, homeopathy, acupuncture, reiki, kinesiology, dark-field microscopy and Vega testing. In 1997, Dr. Brenner founded the New Hope Medical Center, Tel Aviv, Israel, for the Holistic Treatment of Cancer.
Dr. Friedrich R. Douwes, M.D.
Dr. Douwes is a world-renowned oncologist and the Medical Director of Klinik St. Georg in Bad Aibling, Germany. Dr. Douwes founded Klinik St. Georg in 1991 and treats over 5,000 patients a year, integrating holistic (hyperthermia, electrochemical tumor therapy and psychotherapy) and traditional approaches (radiation, chemotherapy and surgery) to provide a total cancer therapy. Dr. Douwes impressive medical expertise includes: Medical Director of Sonnenberg Clinic for Oncology, Chief Physician, Medical Director of VERAMED Cancer Hospitals and Editor of the German Journal of Oncology. Dr. Douwes is presently the Vice President of the German Society of Oncology and has published over 100 scientific papers to date, specializing in alternative cancer treatments.
Mr. Akitsugu Moriyama
Mr. Moriyama, President of the Cancer Control Society, Japan Branch, is the most recent appointment to CancerOption.com?s Scientific Advisory Board. For the past 20 years, Moriyama has led seminars to over one million people throughout Japan, Taiwan and the United States regarding orthomolecular nutrition and cancer. He was also the first in Japan to introduce and educate doctors as well as the general public on integrative cancer treatments.
Marketing Strategy
CancerOption.com has retained AdNet International as its Internet marketing strategist for the development and implementation of marketing programs and innovative technology. AdNet International provides Internet marketing consulting to some of the biggest names on the Internet including: America Online (AOL), Mindspring's (MSPG) web hosting customers and Primehost. CancerOption.com will generate revenue through a dynamic marketing campaign designed to maximize the portal?s overall potential. The primary sources of revenue will be product sales, web site advertising, sponsorships and referral fees. In the Company?s early stages, sales of the proprietary supplements will account for the bulk of the revenue production, but will surely be surpassed by the other services.
CancerOption.com's marketing strategies includes reciprocal link exchanges with web sites that contain cancer and general health related research and articles in order to both increase traffic and expand on content resources. By establishing affiliate programs and advertising options for physicians, health care professionals and other health related web sites, the CancerOption.com portal will significantly increase exposure while generating additional revenues in the form of fees and commissions.
The Company will reach a wide audience through advertisements in health and Internet related magazines. Sponsorship programs and philanthropic contributions to cancer related fund-raisers will help support the fight against cancer while creating a presence in the cancer community. Agreements with nonprofit patient support organizations for the use of mutual content and marketing have been initiated.
Competition
Because of the Company?s unique market niche, we are not aware of any Internet portal that can truly be categorized as competition for CancerOption.com. As the premier provider of such in-depth, online cancer research and support on the Web, CancerOption.com should quickly position themselves as an industry leader among healthcare portals. Below are a few profiles on leaders of the pack. These companies maintain valuations associated with their individual revenues and listing on the NASDAQ National Market and are great examples of what we might expect from CancerOption.com in the future as their business plan unfolds.
drkoop.com (Nasdaq: KOOP): Internet-based consumer health care network
Product: Information and services
Second Quarter Earnings/Share: ($1.28)
Market Capitalization: $500 million
Noteable: Ranked the #1 dedicated health care web site by unique users for the 2nd quarter of 1999
onhealth.com (Nasdaq: ONHN): Internet information resource
Product: Independent news and views on health and wellness
Second Quarter Earnings/Share: ($0.43)
Market Capitalization: $130 million
Noteable: Ranked in the top five of health web sites relating to Internet traffic for the 2nd quarter of 1999
Healtheon (Nasdaq: HLTH): Health care Internet company
Product: Communications and transactions for healthcare industry
Second Quarter Earnings: ($.30)
Market Capitalization: $2.9 billion
Analyst Coverage
Though it has only been trading publicly for a few short months, CancerOption.com has already caught the eye of two analysts who have initiated coverage with price targets appropriate for an industry leader. The first report came from a leading European Internet financial publication called The Stock Reporter. The Stock Reporter released an investment opinion calling for a target price $22.00 next year! ?CancerOption.com is one of the most exciting companies to come to our attention in recent years,? explains Dennis C. Hass of The Stock Reporter. ?Its growth potential in the cross-section of the two fastest growing industries, Internet and Pharma, is both very dynamic and unlimited. CancerOptions.com?s International expansion via the Internet therefore will assure its continued profitable growth into the next century.? For the complete profile, go to:
stockreporter.de
On this side of the Atlantic, Gilbert & Chatterton analyst, Doug Wetzel, has recently initiated coverage on CancerOption.com with a short-term target of $15.50 and a long term, 24-month target of $30.00! As part of his report, Mr. Wetzel has compiled the following projected Income Statement for the next five years for CancerOption.com:
Sales/Revenues Net Income Fully Diluted EPS
Year 1 1999 (Oct-Dec) E $550,000 ($1,213,222) ($0.16)
Year 2 2000 E $4,300,000 ($1,479,955) ($0.20)
Year 3 2001 E $9,675,000 $170,589 $0.02
Year 4 2002 E $33,862,000 $10,843,114 $0.74*
Year 5 2003 E $101,587,500 $43,935,384 $1.49**
*It is estimated that in Y4, additional shares of CancerOption.com will be issued, total shares outstanding at 14,733,200.
**It is estimated that in Y5, additional shares of CancerOption.com will be issued, total shares outstanding at 29,466,400.
Conclusion
CancerOption.com?s cross-section of the Internet Commerce and Health Care industries is an extremely dynamic combination with amazing growth potential. The Company?s specific focus on cancer protocols and research serve a never-ending demand and provides CancerOption.com with a unique niche upon which to capitalize. We are expecting explosive growth from the Company in this otherwise under-developed sector as the Internet continues to boom and CancerOption.com develops into an industry leader not only among cancer related portals, but all health care portals. Sales of the proprietary protocols coupled with myriad advertising opportunities, profitable affiliate programs and low overhead will create exponential growth providing CancerOption.com with a very profitable bottom line to go with ever increasing revenues. Currently trading under $4, CancerOption.com provides investors with an extremely exciting and profitable opportunity!
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Disclaimer
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¸ Copyright 1999, Business Financial Network, Inc. All rights reserved.
Business Financial Network, Inc. is not a Registered Investment Advisor or a Broker / Dealer. This communication reflects opinions from CancerOption.com, Inc. (the Company). Readers are advised that this electronic publication is issued solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy.
The opinions and analysis included herein are based on sources believed to be reliable and in good faith but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. The foregoing discussion contains forward-looking statements which are based on current expectations and differences can be expected.
The information contained herein has been provided by the Company to Business Financial Network, Inc. for information purposes only. In addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities of the Company.
Readers are urged to consult with independent financial advisors with respect to an investment in the shares mentioned herein. Investors should review a complete information package on the Company, which should include, but not be limited to, the Company's annual report, quarterly report, press releases, as well as all regulatory filings. All information contained in this report should be independently verified with the Company mentioned herein. Any opinions expressed in this report are statements of judgment as of the date of publication and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. Neither Business Financial Network, Inc. nor its officers, directors, partners or employees / consultants accept liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.
Ahead of the Street and its owner, Ian Wyatt have been paid a fee of 14,100 free trading shares of CancerOption.com, Inc. (OTC BB: CAOP) from Thor Equity Group, LLC for consulting services including, but not limited to, research, project analysis, and electronic dissemination of this report and other updates on the Company. Employees and/or principals of Business Financial Network, Inc. may purchase shares on a voluntary basis in the open market and may buy or sell shares in this company or others without prior notification depending on market conditions and personal financial circumstances.
THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED.
INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We encourage the reader to review the investing information available with the Securities and Exchange Commission ("SEC") at sec.gov and / or the National Association of Securities Dealers ("NASD") at nasdr.com. Readers can review all public filings by the Company at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site. |
