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News Alert
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Care Decision Corp. (OTCBB: CDED) |
6 Month Target Price: $.22 |
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| Shares Outstanding |
70.0 million |
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| Approx. Float |
15 million |
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| 6 Month Price Proj. |
$.22 |
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A Few Reasons to Own CDED:
| 1. |
Enormous underdeveloped market potential. Medical IT markets expected to grow to $20 billion in 2004 and $100 billion by the close of 2006. |
| 2. |
Few competitors in market with no established leader. Opportunity for "first to market" designation and resultant market share benefit. |
| 3. |
Multiple Patents are currently anticipating short-term approval distinguishing technology and protecting it from competitive duplication. |
| 4. |
CDED signs deal to acquire Netcare Health Group Subsidiary, CDED Gains Expected $5 Million Annual Revenue Stream and Base of 800 Physicians for Deployment of E-Health Products. |
| 5. |
CDED estimates revenue of $6.4 Million for 2003, and $15.7 Million for 2004. |
| 6. |
Deeply experienced management team with demonstrated success in the healthcare products and information technology industries. |
| 7. |
Potential acquisition target. There is a strong possibility that CDED could become a "technology acquisition target" stock for a health insurer or pharmaceutical company. |
| 8. |
CDED is currently grossly undervalued providing potential opportunity for rapid investment return and appreciation. |
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| UPDATE |
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Great News! With this press release, it appears to us, CDED is well on its way to generating $6.4 Million in revenues in 2003, and being profitable.
In our opinion, with continuing PR like this, our $0.22 hypothetical target price may sooner be reached. Keep an eye on this one, and as always Watch This Stock Trade.
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| Press Release |
CAREDECISION CORP. AND NETCARE HEALTH GROUP, INC. EXECUTE DEFINITIVE AGREEMENT
CAREDECISION ACQUIRES PHARMACY OPERATIONS WITH A PROJECTED $5 MILLION ANNUAL REVENUE STREAM AND 800 PHYSICIAN CLIENT BASE FOR E-HEALTH PRODUCTS
New York, NY - February 4, 2003 - CareDecision Corp. (OTCBB:CDED), the e-Health technology developer and medical PDA innovator, today announced that is has signed a Definitive Agreement with Netcare Health Group (OTCBB:NCGH) to acquire its wholly owned subsidiary, Netcare Health Services, Inc. The agreement between the two companies will finalize upon the filing of the appropriate merger documents that follow a defined diligence period that concludes on February 13, 2003.
Netcare Health Services, Inc., specializes in the provision of pharmacy fulfillment services to the nation's long term care and nursing home industries. The acquisition, when completed, transitions CareDecision Corp. from its focused e-Health business model, and its intermediary role providing Internet-enhanced communication software solutions between physicians and the other industry participants, to also include a new business unit offering prescription drug fulfillment and pharmacy services at several levels within the healthcare system.
Robert Cox, CEO of CareDecision commented, "The addition of Netcare to our existing operation satisfies the established internal criteria that we rigidly observe when evaluating any acquisition, merger, technology advancement and product development. Netcare has an existing business that is projected to yield a nearly $5 million annual revenue stream, while at the same time furnishing the Company with a customer base that has an expressed need for those solutions that our core e-health technologies can satisfy. Netcare currently provides service to nearly 800 practicing physicians who in turn administer a large geriatric patient base, and who will benefit from the introduction and adoption of our clinical software applications."
Mr. Cox continued, "This acquisition immediately introduces a broad base of new clients to our core e-Health technologies, while simultaneously providing Netcare with the technological tools to create a service differentiation that separates them from the competition. The inclusion of CareDecision technologies within the provided Netcare pharmacy fulfillment service will create a distinguishing and uniquely saleable feature that will positively impact the pursuit of incremental pharmacy fulfillment business. It is the perfect union of diverse enterprises that will result in significant advancements for each individual entity while yielding compounded benefits to the parent."
About CareDecision Corp.
CareDecision Corp. is an e-health PDA-based information technology company that provides physicians with sophisticated medical information solutions at the point-of-care. The company's patent-pending software systems, communication technologies and clinical applications furnish office-based physicians, EMR physicians, and industrial medicine practitioners with vital patient information using an e-health business model, on a Microsoft Windows CE-based PDA.
Forward-Looking Statements
This news release contains forward-looking statements about our business or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.
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| Valuation |
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In the $1.6 trillion healthcare field, CDED has a market capitalization of only $3 Million Dollars. CDED is now moving into the deployment phase of MD@Hand and the implementation phase of its marketing program. With the planned acquisition of Netcare Health Group, and several agreements already in place, including Pharmacare Corporation, a subsidiary of (NYSE:CVS), CDED is projecting revenues of about $6.4 Million this year and $15.7 Million next year, and also to be profitable.
Since CDED is a development stage company, which is moving from R&D to revenues and profits (particularly this year and beyond), in our opinion, the best way to value CDED is on this year’s anticipated revenues and earnings potential.
According to Multex, CDED’s peer group trades in the marketplace at 7.3 times trailing twelve months revenue.
In our opinion, since CDED is the new kid on the block, and trying to make a name for itself, if over the next six months CDED were to trade in the marketplace at 1/3 the multiple of its peers, then based on projected revenues of $6.4 Million Dollars this year, with about 70 million shares outstanding, this would equate to a 6 month target price of $0.22.
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| Conclusion |
Like many exciting opportunities that we uncover, CDED is a development stage company that may be poised to move to the next level. Once the rollout of CDED's products and services begins in earnest we believe that good things could happen including a higher market capitalization and potential rapid stock price appreciation, as the investing public becomes more aware of CDED potential. |
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******* Important Notice and Disclaimer: Please Read *******
Investor Insights, and affiliates (II), publishes reports providing information on selected companies that II believes has investment potential. II is not a registered investment advisor or broker-dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. II accepts no liability for any loss arising from an investor's reliance on or use of this report. An investment in CDED is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. An affiliate of II has been hired by the company, and additionally received 2.5 million free trading shares of common stock of CDED by a third party for the publication and circulation of this report. II intends to sell all or a portion of the of the CDED stock at or about the time of publication of this report. Subsequently II may buy or sell shares of CDED stock in the open market. This report contains forward-looking statements, which involve risks, and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements. For further details concerning these risks and uncertainties, see the SEC filings of CDED including the company's most recent annual and quarterly reports.
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