wise,
Just found this what does everyone think.
Wednesday July 9 9:13 AM EDT
Company Press Release
PAR: J Freedman Starts NHMCF at Buy
NEW YORK--(BUSINESS WIRE)--July 9, 1997--
EXECUTIVE SUMMARY FOLLOWS: For a complete copy of the report call
1-800-883-8841
PUBLIC ANALYSIS & REVIEW / PAR
NATIONAL AFFILIATED CORPORATION (NAAC)
J. Freedman & Associates,
Supervisory Analyst
July 9, 1997
Public Analysis & Review (PAR) is a program of the Investors Research Institute (IRI), a non-profit membership organization, administered by J. Freedman &
Associates, member-New York Society of Security Analysts. Scrutiny via continuing quarterly coverage by a PAR analyst is a requirement for continued
membership in IRI's Elite Corporate Membership Program. J. Freedman & Associates is an independent financial services group located in Miami, FL. The
author's experience includes: security analyst, supervisory analyst, with over 15 years on Wall Street firms such as Bear Stearns & Co., Inc., Kidder Peabody &
Co., Phillips, Appel & Walden & Co., Inc., and more recently J.W. Charles/CSG.
Date of Report: July 9, 1997 Price: $US5-5/8 Price Range: US$3 7/8-US$6 (30 days prior) Price Target: US$10 (12 months) Industry Sector: Medical device
manufacturing Shares outstanding: 11,064,915 Estimated float: 3,000,000 Assets: C$27,302,716 (March 31, 1997) Recommendation/rating: Buy
Period FY96 1Q97 2Q97 3Q97 4Q97E
Revenues $604 $688 $974 $1,474 $2,912
Earnings $(3,211) $(1,008) $(1,062) $(861) $(989)
Per Share $(0.32) $(0.09) $(0.10) $(0.08) $(0.076)
Period 1Q98E 2Q98E 3Q98E 4Q98E
Revenues $4,090 $5,313 $6,536 $7,760
Earnings $(207.8) $(205.7) $(203.7) $(201.6)
Per Share $0.01 $0.01 $0.01 $0.01
Dollars in thousands Canadian except per-share amounts. Parentheses indicate a negative amount. Estimates are pro-forma, in consultation with the company.
NATIONAL HEALTHCARE MANUFACTURING CORPORATION (NHMCF / OTC)
-- National Healthcare has developed a unique robotic system--now in its third generation--for assembly and packaging of medical procedure kits.
-- The Company's basic business offers an array of lower-cost products to the price-conscious healthcare industry.
-- Revenues for FY96--the first full year running--were only C$556,105, but for the first three quarters of FY97, revenues rose 535% to C$3,136,831 over
previous year.
-- The Company has brought on a number of healthcare professionals with solid backgrounds in medical-products marketing and distribution.
-- Selective acquisitions promise broader product lines and production capability as well as a major role in an innovative distribution system.
COMPANY
National Healthcare Manufacturing Corporation (``NHMCF'' or the ``Company'') is a dynamic young public firm that manufactures and assembles sterile
instrument and supply kits for a range of medical procedures. The Company's robotic assembly system offers significant cost advantages. Recent acquisitions
include a subsidiary that supplies a line of disinfectant, skincare and other liquid products for the medical professions and the rights to manufacture reusable
surgical gowns and drapes.
The Company was organized in 1993 by Mahmood (Mac) J. Shahsavar. His concept of a robotic-assembly facility specifically for medical products attracted the
interest of the Manitoba Provincial and Canadian Federal governments, which provided startup money for the Company. Shahsavar organized a firm including
several directors and officers with strong backgrounds in medical-products supply.
NHMCF's computer-controlled robotic equipment, which is now in its third generation, greatly reduces the costs of assembling these prepackaged kits. In the
Company's 18,000-sq.-ft. ``clean'' room the equipment can accurately and precisely process as many as 120,000 individual elements an hour (this contrasts to a
manual rate of roughly 250). The robotic equipment can readily be reformated for different tasks and customized for individual orders. NHMCF offers some 800
basic kit configurations, ranging from complex surgical trays including gowns and drapes to simpler homecare treatment and mother/baby units.
To complement its basic product offering the Company has undertaken a considered acquisition program. Using in part the proceeds of a C$2.3-million IPO in
January 1996, NHMCF purchased in May of that year the liquid products division of Arjo Canada, which had sales of C$4.6 million in 1995. This division was
launched at the end of the year as National Care Products, Ltd.
NHMCF gained additional working capital through two brokered private placements: one in August 1996, grossing C$2.7 million, and another in January 1997
for C$9.6 million. At the time of the second the Company acquired the Gam-Med division of Huntington Laboratories in Antioch, Illinois.
In April of this year the Company entered into a 50/50 partnership with two American entrepreneurs to create National Healthcare Logistics. The partnership will
develop a distribution system for healthcare products that represents a significant departure from current distribution modes.
In May of this year the U.S. Food & Drug Administration (FDA) approved marketing of the Company's orthopedic and ophthalmic custom packs. More
importantly, the FDA, by an Interim Regulatory Guidance, approved NHMCF to market its entire product line in the U.S.
For the Company's fiscal year ending June 30, 1996--the first for which it could report any meaningful numbers--revenues amounted to C$556,105. For the first
nine months of FY97, NHMCF posted sales of C$3,136,831, representing an impressive rate of increase of 535% over the first three quarters of FY96. The
period just ended marks the fifth consecutive quarterly gain for NHMCF.
With the Company pursuing an aggressive, but selective, acquisition program, it may not pay dividends for several years. All the same, NHMCF revenues seem to
be snowballing. FY97 got off to a robust start, with C$3.1 million posted in the first three quarters. On December 4, 1996, management reported C$7 million in
orders, and with its newly acquired liquid-products and packaging divisions now on line--as well as its third-generation robotic equipment--the Company projects
sales of between C$15 million and C$22 million for calendar 1997.
In light of these developments, we assign NHMCF a ``buy'' recommendation, with a target of $10.
Following this report, the Company will be followed by PAR on a continuing basis. An updated analysis will be published within 5 days of each quarterly earnings
release. IR/j: Investors Research Journal is published under license by Investors Research Institute, IRI, Inc., Administrators -- netcapital.com
J. Freedman & Associates, P.O. 1397, Safety Harbor, FL 34695 / 800-413-1522, Fax 813-669-0094
Investors Research Institute, 2 Greenwich Plaza, Suite 100, Greenwich, CT 06830 / 203-622-3935
IRI, Inc., 1036 Union Road, Suite 231, West Seneca, NY 14224 / 716-822-9311, Fax 716-822-9374
IR/j: Investors Research Journal, P.O. 750471, Forest Hills, NY 11375-0471 / 212-484-4747, Fax 718-523-2137
National Healthcare Manufacturing Corp., 1455-409 Granville St., Vancouver, BC, V6C 1T2 / 604-689-8581, Fax 604-689-8337
INVESTOR RELATIONS: 1-800-883-8841
Contact:
J. Freedman & Associates
Ellery McClanahan, 800/413-1522
More news for related industries: banking, medical.
Additional news and quotes: National Healthcare Manufacturing Corp - NHMCF.
I hope that people will start to discuss the stock and stop all this
bad mouthing....
joel |
