THE CONSERVATIVE SPECULATOR DECEMBER 1998 ISSUE
SPECIAL SITUATIONS
WE LAUNCHED THIS NEWSLETTER TO MEET AN IMPORTANT NEED THAT WASN'T BEING FILLED.
OUR METHOD OF MEETING THAT NEED IS EMBODIED IN OUR MAIN THRUST:
" TO HELP OUR CONSERVATIVE READERS TO MAKE MORE MONEY WITH THE 10 PERCENT THEY
PUT INTO OUR SPECIAL SITUATION RECOMMENDATIONS THAN THEY MAKE WITH THE
90 PERCENT THEY PUT INTO EVERYTHING ELSE. "
WE SELECT ONLY THOSE STOCKS WE FEEL HAVE THE POTENTIAL TO AT LEAST
DOUBLE WITHIN THE NEXT 6 TO 12 MONTHS.
OTHER FEATURES THIS MONTH
MEDICAL RESORTS INTERNATIONAL INC. PAGE 3
1. PROVIDES SCHEDULED & EMERGENCY MEDICAL SERVICES FOR
TRAVELERS WITH CRITICAL MEDICAL NEEDS SUCH AS KIDNEY DIALYSIS.
2. QUALITY EMERGENCY CARE FOR CARIBBEAN VACATIONERS AND RESIDENTS.
3.COMPLETED 1ST YEAR OF MEDICAL OPERATIONS:
PROJECTED 3,300 MEDICAL PROCEDURES,
COMPLETED 5,413 - PROFITABLE.
4. PLANNING DIALYSIS CENTRES THROUGHOUT CANADA WHERE DIALYSIS
PATIENTS NOW HAVE LIMITED SERVICE. WILL ALSO HAVE THREE ADDITIONAL
CENTRES IN THE CARIBBEAN AND U.K. .
5. PROFIT IN QUARTER 1 ENDED 9/30/98 INCREASED 950 % FROM QUARTER 1 1997.
6. UNDERVALUED - SELLING AT LESS THAN HALF OF BOOK VALUE.
KEY FACTS
BUSINESS: MEDICAL SERVICES FOR TRAVELERS
LISTED: OTC BULLENTIN BOARD
SYMBOL: MRINF
PRICE: C $0.11 (SEE NOTE)
SHARES OUTSTANDING: 30,928,592
APPROXIMATE FLOAT: 17,500,000 SHARES
EFFECTIVE FLOAT: 12,000,000 SHARES
MARKET CAPITALIZATION: C $3,400,000
BOOK VALUE PER SHARE: C $0.26
NOTE: BY THE TIME YOU READ THIS, THE SHARES SHOULD BE BEGINNING TO TRADE
ON THE OTC BULLENTIN BOARD. IT HAS BEEN TRADING ON THE PINK SHEETS.
THE COMPANY FILED IT'S FORM 20 TO BECOME A FULL REPORTING COMPANY.
IT WILL ALSO CONTINUE TO TRADE ON THE TORONTO CANADIAN ( CDN )
UNDER THE SYMBOL MDRE .
OVERVIEW
MEDICAL RESORTS INTERNATIONAL IS THE FIRST COMPANY ASSEMBLING A NETWORK
OF DIALYSIS CENTRES AND OTHER HEALTH CARE SERVICES FOCUSING ON, BUT NOT
LIMITED TO, THE TRAVELLING PUBLIC. IT'S FLAGSHIP FACILITY OPENED 6 / 97 ON THE
CARIBBEAN ISLAND OF ANGUILLA, BRITISH WEST INDIES. IT OPERATIES IT'S HOTEL DE HEALTH (TM)
WHICH OFFERS THE USUAL CARIBBEAN AMENITIES SUCH AS SUN, SAND RECREATION AND RELAXATION.
THE FOCUS, HOWEVER, IS TO OFFER SUCH AMENITIES TO PEOPLE OTHERWISE UNABLE TO TRAVEL
BECAUSE OF HEALTH ISSUES WHICH REQUIRE CONSTANT ATTENTION. KIDNEY DIALYSIS, REQUIRING
4 HOURS OF TREATMENT 3 TIMES PER WEEK, IS THE MOST PREVALENT CONDITION ACCOMMODATED
AT HOTEL DE HEALTH (TM).
THE ANGUILLA FACILITY WAS ORIGINALLY PROJECTED TO PERFORM 3,330 PROCEDURES DURING ITS
FIRST FULL YEAR OF OPERATIONS. IT ACTUALLY DID 5,413. MANAGEMENT PROJECTED REVENUE FOR
THE YEAR ENDED6/30/98 OF $ 1,147,000 WITH A PROFIT OF $ 242,000. ITS AUDITED STATMENT SHOWS
IT ACTUALLY HAD REVENUE OF $ 1,279,453 WITH A PROFIT OF $ 566,406. THE RESORT IS BOOKED TO
CAPACITY.
HISTORY
PRIOR TO 1995, THE COMPANY WAS A CONSULTING FIRM ENGAGED PRIMARILY IN ADMINSTRATIVE AND
RELATED SUPPORT IN THE MEDICAL INDUSTRY. MANAGEMENT REORGANIZED ON OPPORTUNITY SPAWNED
BY THE SOCIALIZED MEDICAL SERVICES AS PRACTICED IN CANADA AND THE U.K. .
PATIENTS WERE EXPERIENCING LONG WAITING LISTS FOR ELECTIVE SURGICAL PROCEDURES SUCH AS
JOINT REPLACEMENT, AND MORE IMPORTANTLY, IN RECEIVING LIFE SAVING KIDNEY DIALYSIS. IN 1995,
MRINF DEVELOPED IT'S UNIQUE STRATEGY AND CHANGED IT'S FOCUS TO PROVIDE:
1. MEDICAL TOURISM
2. PRIVATE DIALYSIS FOR TRAVELLERS IN CANADA, U.K. AND THE CARIBBEAN.
3. FACILITIES FOR ELECTIVE MEDICAL PROCEDURES.
4. ACQUISITION OF COMPANIES INVOLVED IN SUPPORT OF THESE ACTIVITIES.
BUSINESS / PRODUCTS
THE HOTEL DE HEALTH (TM) COMBINES ALL THE RECREATIONAL ASPECTS OF A VACATION DESTINATION
WITH THE AVAILABILITY OF QUALITY MEDICAL SERVICES. IT CONTAINS AN 8 STATION STATE-OF-THE -ART
DIALYSIS CENTRE, CARDIAC ASSESSMENT, ORTHOPEDICS, INTERNAL MEDICINE,UROLOGY, ULTRA SOUND,
GENERAL MEDICAL ASSESSMENT & TREATMENT AND TREATMENT OF DIABETES & HYPERTENSION.
IT'S CARDIAC UNIT CURRENTLY MANAGES 53 PATIENTS WITH HEART DISEASE OR HEART PROBLEMS.
IT'S CHELATION CLINIC BECAME FULLY OPERATIONAL 9/30/98 AND EXPECTS TO COMPLETE IN EXCESS OF
750 CHELATION PROCEDURES IN IT'S FIRST YEAR. THE OVERALL FACILITY PROVIDES FULL, QUALITY
MEDICAL
SERVICES TO BOTH TRAVELERS AND CARIBBEAN RESIDENTS.
MRINF'S FACILITIES ARE DESIGNED TO OPERATE ALONG CANADIAN MEDICAL PROCEDURES & PROTOCOLS,
CONSIDERED AMONG THE FINEST WORLDWIDE. IT IS STAFFED WITH NORTH AMERICAN PHYSICIANS &
TRAINED
MEDICAL SUPPORT PROFESSIONAL WHO MEET THE HIGH CANADIAN STANDARDS. DURING EACH 4 HOUR
TREATMENT, THE DIALYSIS PATIENTS CAN ENJOY A MAGNIFICENT CARIBBEAN VIEW, ACCESS TO
TELEPHONES,
VCR'S, AND OTHER TOOLS TO HELP PASS THE TIME.
EQUIPMENT IS STATE-OF -THE -ART AND IS OPERATED & MAINTAINED BY ON-SITE PROFESSIONALS.
THE MEDICAL STAFF IS RECRUITED FROM NORTH AMERICAN SOURCES AND IS DEDICATED TO MEDICAL
EXCELLENCE FOLLOWING THE STRINGENT REQUIREMENTS OF CANADIAN PROTOCOLS. DISCIPLINES
INCLUDE EMERGENCY MEDICINE, NEPHROLOGY, INTERNAL MEDICINE (INCLUDING GASTROENTERNOLOGY),
ANESTHESIA, CRITICAL CARE, AND PSYCHIATRY. SURGERY IS AVAILABE IS AREAS SUCH AS UROLOGY,
GYNECOLOGY, ORTHOPEDICS, AND PLASTIC & GENERAL SURGERY. ANCILLARY SUPPORT IS AVAILABLE
IN THE AREAS OF RESPIRATORY AND PHYSIOTHERAPY TREATMENT. MRINF MAINTAINS ELECTRONIC LINKS
TO RADIOLOGISTS LOCATED IN EDMONTON TO EXPEDIATE X-RAY ANALYSIS.
IN ADDITION TO CRITICAL DIALYSIS, MRINF OFFERS SEVERAL GENERAL CATEGORIES OF ELECTIVE MEDICAL
SERVICES IN IT'S CENTRES: JOINT REPLACEMENTS, PLASTIC SURGERY, INTERNAL MEDICINE, PAIN
MANAGEMENT, EATING DISORDERS, ADOLESCENT (NEXT WORD ??), GERIATRIC PSYCHIATRY,
DIABETIC CLINIC AND HYPERTENSION CLINIC.
MARKET
KIDNEY DIALYSIS IS ONE OF THE FASTEST GROWING INDUSTRIES IN THE HEALTH CARE SECTOR.
THE DIALYSIS INDUSTRY IS WELL INSULATED FROM ANY ECONOMIC DOWNTURNS. THE PATIENTS MUST
GET
TREATMENT TO SURVIVE. UP TO NOW, TRAVEL BY DIALYSIS PATIENTS HAD TO BE RESTRICTED BECAUSE
THEY REQUIRE TREATMENT 3 TIMES EACH WEEK. MRINF THE FIRST COMPANY ESTABLISHING A NETWORK
OF DIALYSIS CENTRES TO SERVE TRAVELERS. IT'S CENTRES WILL BE LOCATED IN CANADA, U.K. AND
THE CARIBBEAN. THE U.S.A. CENTRES WILL BE STRATEGIC ALLIANCES.
KIDNEY OR RENAL DISEASE IS A SIGNIFICANT HEALTH PROBLEM WORLDWIDE. IT IS GROWING AT THE
RATE OF 12 TO 14 PERCENT PER YEAR. IRONICALLY, IMPROVED HEALTH CARE AND LONGEVITY CAN
INCREASE THE PROBABILITY OF KIDNEY DISEASE IN AN AGING POPULATION. DIALYSIS CENTRES IN
MOST PARTS OF THE WORLD CAN BARELY HANDLE THE NEEDS OF THEIR LOCAL POPULATIONS.
TRAVELERS CANNOT RELY ON THEM TO MEET THEIR NEEDS. THE DEMAND FOR DIALYSIS AND OTHER
MEDICAL PROCEDURES FAR EXCEEDS THE SUPPLY, PARTICULARLY IN COUNTRIES WITH SOCIALIZED
MEDICINE. CANADA AND THE U.K. FOR EXAMPLE, CANNOT DELIVER THESE SERVICES IN A REASONABLE
TIME AND ON AN ECONOMIC BASIS. THE REALITY OF LIMITED DIALYSIS CHAIRS IS THAT SOME PATIENTS
DO NOT SURVIVE. MRINF PLANS TO HAVE A TOTAL OF 10 DIALYSIS & STRATEGIC CENTRES IN FIVE
COUNTRIES.
FOUR COMPANY CENTRES WILL BE IN CANADA, 2 IN ENGLAND AND THE ANGUILLA FACILITY TO COVER
THE CARIBBEAN. THE BALANCE IN THE U.S.A. AND SCOTLAND, WILL BE STRATEGIC ALLIANCES.
EACH FACILITY WILL BE FORMED AS A SEPARATE COMPANY TO LIMIT MEDICAL LIABILITY.
MANAGEMENT
ROBERT TALBOT IS PRESIDENT, CEO AND DIRECTOR. HE WAS PRESIDENT OF A MANAGEMENT COMPANY
THAT
SUPPLIED MANAGEMENT & BILLING SERVICES IN THE HEALTHCARE INDUSTRY.
ROBERT BURGENER IS SECRETARY AND DIRECTOR AS WELL AS IN-HOUSE LEGAL COUNSEL. HE WAS
ASSOCIATE PARTNER IN THE LAW FIRM OF BURGENER & COMPANY FROM 1984 TO 1996.
DR. PAGE EDGAR IS PRESIDENT OF THE HOTEL DE HEALTH SUBSIDARY. PRIOR TO 1996, SHE AND HER
PARTNERS RAN THE EMERGENCY DEPARTMENT OF A LARGE METROPOLITAN HOSPITAL. SHE HAS BEEN
AN ACTIVELY PARTICIPATING EMERGENCY PHYSICIAN FOR 15 YEARS.
FINANCIAL STATUS (6/30/98)
( I WON'T INCLUDE THIS AS WE ALL KNOW WHAT THIS IS FROM PREVIOUS NEWS RELEASE /
YOUR ONLINE EDITOR )
RECOMMENDATION
I RECOMMEND MEDICAL RESORTS FOR BOTH MIDTERM AND LONGTERM APPRECIATION. IT IS
ESTABLISHING A FIRM FOOTHOLD TO AN AREA OF CRITICAL NEED. THERE IS HIGH DEMAND FOR DIALYSIS.
THE DIALYSIS CENTRES IN NORTH AMERICA ARE NORMALLY FULLY BOOKED, WHICH MEANS PATIENTS
REALLY CAN'T TRAVEL - THEY MUST HAVE A DIALYSIS TREATMENT FOR 4 HOURS 3 TIMES A WEEK.
NOW FOR THE FIRST TIME, SOME OF THEM CAN TAKE A VACATION AND STILL GET TREATMENTS.
THE QUALITY OF THE COMPANY'S MEDICAL CARE IN THE CARIBBEAN, BASED ON STRINGENT CANADIAN
STANDARDS, FAR EXCEEDS SERVICES OTHERWISE AVAILABLE TO EITHER LOCAL RESIDENTS OR TRAVELERS.
THIS IS THE KIND OF SITUATION I LOOK FOR:
1. EARLY ENOUGH IN IT'S HISTORY TO GET IN BEFORE THE INVESTING PUBLIC GETS ON THE BANDWAGON.
2. HIGHLY UNDERVALUED AT LESS THAN HALF IT'S BOOKVALUE AT THE PRESENT TIME.
3. PAST THE START-UP STAGE WHERE MOST COMPANIES ARE STILL LOSING MONEY.
THIS ONE IS ALREADY OPERATING IN THE BLACK.
4. POTENTIAL FOR CONTINUED GROWTH IS EXCELLENT.
5. WHEN IT BECOMES FULLY REPORTING, THERE WILL BE INCREASED INTEREST ON THE PART OF
THE BROKERAGE AND INVESTMENT COMMUNITY.
6. EXPANSION IS OCCURING TO ALLOW THE CAPACITY TO INCREASE BY 2.5 TIMES.
7. REVENUES FOR QUARTER 4 ENDED 6/30/98 INCREASED 25 PER CENT FROM LAST YEAR.
NET PROFIT INCREASED 950 PER CENT FROM LAST YEAR, DESPITE HURRICANE GEORGES' WINDY EFFORTS.
HERE ARE SOME OTHER THINGS I LIKE:
1. THE ANGUILLAN GOVERNMENT HAS CONTRACTED WITH MRINF TO PROVIDE DIALYSIS TO 3 RESIDENTS.
THE CASH FLOW GENERATED BY THIS CONTRACT ( $ 84,500 PER YEAR PER PATIENT) PAYS FOR MOST
OF HOTEL DE HEALTH (TM) EXPENSES.
2. MRINF IS POISED TO FILL THE NEED FOR DIALYSIS CHAIRS IN CANADA AND THE U.K. .
3. MEDICAL PROCEDURES PERFORMED TO DATE FAR EXCEED FORECASTS.
4. THE COMPANY IS EXCEEDING IT'S PROJECTIONS OF REVENUES AND PROFITS.
CONTACT
( TYPICAL CONTACT INFORMATION THAT WE ALL KNOW / YOUR ONLINE EDITOR )
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