Laurens, Here's the e-mail I got....
The Future Superstock, Inc. (http://www.futuresuperstock.com)
February 14, 1998
(Released for the opening of trading on February 17,1998)
Email the Editor: info@futuresuperstock.com
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Copyright (c) 1998 by The Future Superstock, Inc. All Rights Reserved.
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UPDATE ON NATIONAL HEALTHCARE MANUFACTURING (NHMCF)
Approximately 6 months ago, we profiled a Company by the name of
National Healthcare Manufacturing. National Healthcare trades on the
NASDAQ Small-Cap under the ticker symbol NHMCF. On Friday, February
13th, National Healthcare closed at $2.78 per share with a bid of $2.72
and an offer of $2.78 per share. The Future Superstock would like to
take this week to update you on the corporate developments over the past
two months at National Healthcare. Please note that our February Stock
Pick will be released within the next 2 to 3 weeks.
For our new subscribers we would like to give you a little background on
National Healthcare. National Healthcare was founded in 1993 and began
trading on the NASDAQ in August of 1996. Over the past year the stock
has traded as high as $6.00 per share and as low as $2.31 per share.
The Company has raised over $30.0 million in cash and in October of 1997
raised $5.0 million. National Healthcare established the world's first
and only automated robotic production facility that assembles and
packages various kits and trays for medical and surgical procedures.
This process allows National Healthcare to produce these products at a
significantly lower cost than the current means available.
Over the past two years, National Healthcare has acquired several
companies and developed several lines of businesses. Currently there
are 6 subsidiaries or divisions of National Healthcare. Over the past
three years revenues have increased by leaps and bounds. In 1995
revenues were $25,659.00. Revenues increased in 1996 to $607,444.00 and
in 1997 revenues exploded to $5,071,597.00. Projections for 1998 are
$23,000,000.00, which would be an increase of over 350%. National
Healthcare has issued 3 press releases this year. There is one release
that we would like to comment on that we deem to be significant. We
have provided that news release below.
On January 16th, approximately one month ago, National Healthcare
Manufacturing released news that we felt was a significant news item.
National Healthcare announced that its subsidiary, National Healthcare
Logistics, had signed its first long term contract to establish and
manage a "Hub and Spoke" distribution center for five Florida based
hospitals. This system is expected to revolutionize supply chain
management for hospitals in the United States and Canada nationwide.
One factor of significance to note is that this system is expected to
account for over $300 million of revenue over the term of the agreement.
National Healthcare expects this system, the "Hub and Spoke", to reduce
total costs for logistical support for hospitals by as much as 15% to
20%. The Future Superstock feels that any reduction in costs in excess
of 5% will be accepted nationwide. Hundreds of hospitals could
potentially participate in this system over the next one to three
years. This would have the potential to create revenues in excess of
$1.0 billion.
Another key factor to consider is the fact that this new distribution
system will obviously need a massive supply of medical products. That
fits right in with National Healthcare's core business, manufacturing.
We feel that this will put National Healthcare over the top and allow
them to generate revenues 20 to 30 times its current rate. Also please
note that National Healthcare's revenues have increased positively for
three consecutive years. Take a serious look and National Healthcare as
the stock has fallen down near its one year trading low.
We recommend calling the Company for an investor relations package. You
can reach the Company's investor relations department at 1-800-883-8841.
We have provided the news release discussed above for your review.
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National Healthcare: Long Term Medical Logistics System Established For
Five Florida Based Hospitals
VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 16, 1998-- National
Healthcare Manufacturing Corporation (NHMC)(VSE:NHM - news;
NASDAQ:NHMCF- news) is pleased to announce its subsidiary National
Healthcare Logistics (NHCL) has signed its first long term agreement to
establish and manage a ''Hub and Spoke'' distribution center for five
Florida based hospitals including Sarasota Memorial and the Lee Memorial
Healthcare System of Fort Myers.
The Hub and Spoke logistics system will revolutionize supply chain
management for U.S. and Canadian hospitals. This Hub and Spoke center,
the first of many, will be owned by the participating hospitals, and
will account for over US $300 million ($430 CDN) in purchases over the
term of the agreement.
The Hub and Spoke system replaces conventional distribution methods, and
will lower the total cost for logistical support by as much as 15-20
percent. NHCL's President, Duane Jorgensen stated ''as more hospitals
are learning of the tremendous potential cost savings from our Hub and
Spoke Program, they are moving away from the current high cost
distribution systems to Hub and Spoke.''
NHCL's Hub and Spoke system is revolutionary because it dedicates the
distribution center to serve only those hospitals participating in the
local alliance. The hospitals will gain additional benefit through the
ability to replace hundreds of supply sources with one distribution
entity and shift many other internal functions to the hub.
The ''Hub'' is the dedicated distribution center and serves as the
platform upon which ''Spokes'' may be formed by mutual consent of the
participating hospitals. Each NHCL ''Hub'' is customized to meet
specific local requirements. Feasibility studies conduced by NHCL will
allow each hospitals to determine the benefits to be gained from
developing any particular ''Spoke.'' The Spokes are common services that
can be cost shared by the local alliance or integrated Delivery
Network. Spokes can take cost savings beyond the 15-20 percent range
mentioned above, and be a source of new revenue for the hospitals.
According to Jorgensen, ''many hospitals will prefer to outsource
completely and will, therefore, contract with NHCL to assume the
ownership, and accept the financial risk for the Hub.''
Mac Shahsavar, President and CEO of National Healthcare said,'' We are
very excited about the potential of the Hub and Spoke Program. In
addition to NHCL's fees for managing these centers, National Healthcare
will benefit by establishing an immediate conduit to market its products
and services directly to healthcare providers.''
Shahsavar continued, ''National Healthcare is rapidly emerging as a
market leader capable of providing the healthcare industry with a
comprehensive array of products and services incorporating custom
packaging, sterile re-packing, and laundry services, along with the
state of the art supply management distribution technology. In the past
two years NHMC has broadened its multi-faceted mandate to include: 1.
Logistics and distribution centers (Hub and Spoke) where NHMC in
partnership with hospitals and/or SYSCO Corp.(NYSE: SYY - news) designs
and implements centralized logistic services for regional authorities.
2. NHMC Hub and Spokes centers will be enhanced by construction of
facilities where reusable products such as Mertex and other protective
wear will be packed, sterilized and delivered daily to hospitals.
3. Packaging services where NHMC will provide procedure based disposable
kits and trays to meet most procedural supply needs in hospitals.
By centralizing these services within the Hub and Spoke/Packaging
Centers, NHMC expects to deliver significant cost savings to the
healthcare system while providing high levels of customer focused
service. We will continue our pursuit for innovative products and
services to further minimize healthcare costs to end users.''
Note to Editors: Neither NASDAQ nor the Vancouver Stock Exchange have
reviewed or accept responsibility for the accuracy of this release.
Hope this helps.
radarluv |
