National Healthcare Analysis
Hello,
I requested an opinion of a respected Fool on the AOL message boards regarding National Healthcare. Here it is for your viewing pleasure:
MedTec, et al:
From time to time I receive investor alerts from numerous on-line services such as Westergaard, Inside Wall Street, Future Superstock, etc. Some recommendations fair well. The most recent recommendation from Future Superstock is National Health. A write up on this stock may be found on their web page at:
futuresuperstock.com
National Healthcare is traded on the NASDAQ under the ticker symbol NHMCF. They have been exceeding sales expectations and developing new product lines. The projected stock price is $10 to $15 range over the next 3 to 12 months. It currently trades at $5.25.
Here is a little background directly from the alert.
<<National Healthcare owns and operates the worlds first and only fully automated production facility capable of assembling and packaging trays and kits for the medical and surgical industry. We reported in November that the Company's technology could assemble and package components at the rate of 21,000 per hour. (The current means of manual labor can only package at the rate of 240 per hour.) In mid-December, National Healthcare broke the 21,000 components per hour barrier and reached 48,000 components per hour.>>
According to the alert a private placement has just been completed in the amount of $9 million so additional acquisitions are a distinct possibility. A recent acquisition may add as much as $5 million in revenue per year.
I will forward the entire alert to your attention. It is understood that Jeff Bruss who runs Future Superstock may be recommending this and other stocks as a service to the individual companies he represents. Sometimes there are gems in these recommendations and your help/analysis on this and other future alerts on healthcare stocks would be greatly appreciated.
Thanks,
Tom
Response from MF MedTec
1) Annualizing first quarter sales... the company will do between $3 and $5
million Canadian this fiscal year. That's a 6-8 times increase over the last fiscal year, but with a market cap of $60 million Canadian, the company is currently selling for 15 times expected revenues and 100 times trailing year revenues.
2) The five letter symbol, the concurrent Vancouver listing and the Canadian private placement says Vancouver Exchange trying to go uptown.
3) 40,000+ widget per hour proven manufacturing potential. At their current size, either a ton of stuff is sitting, waiting to be sold, in warehouses, or the assembly line wasn't stressed for very long. I'm betting on the latter.
4) Doesn't Don Porter work at or own the research firm that put out the report?
Not the Don Porter that played Gidget's father.
Anyway, if I had to guess, I'd say that this stock may run in the short term to $8 or $9. Then you might consider getting out fast. |
