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News Alert
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IBXG Group, Inc. (OTCBB: IBXG) |
6 Month Target Price: $.38 |
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| Shares Outstanding |
40.0 million |
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| Approx. Float |
7.8 million |
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| 6 Month Price Proj. |
$.38 |
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A Few Reasons to Own IBXG:
| 1. |
IBXG is an emerging growth company in the trillion-dollar healthcare industry. |
| 2. |
IBXG is coming off its fourth quarter in a row of increasing revenues and its second consecutive profitable quarter. IBXG experienced a 50% gain in third quarter revenue. |
| 3. |
IBXG estimated EPS for all of 2002 is estimated to be $.01 per share. |
| 4. |
IBXG is currently cash flow positive. IBXG is making acquisitions and expanding its infrastructure while vigorously pursuing the Marketing Plan. |
| 5. |
IBXG is a results-oriented company with three integrated divisions ? Healthcare Transaction Services, Physical Therapy & Occupational Medicine, and Technology/Information Services. |
| 6. |
IBXG has established a strong market niche in the area of Healthcare Transaction Services. |
| 7. |
IBXG recently began managing its largest receivables management project ever totaling $39 million from Intracoastal Health Systems, Inc. of West Palm Beach, Florida. |
| 8. |
IBXG has implemented a clear-cut strategic plan to expand its capabilities in the area of Physical Therapy and Occupational Medicine |
| 9. |
IBXG has developed and recently commenced marketing an innovative web-based inventory management application for the $1.5 billion durable medical equipment (DME) industry. |
| 10. |
BXG has developed and deployed a proprietary online consumer medical records service throughout the U.S. The technology is being utilized by several affinity groups, including one of the largest credit card companies in the world. |
| 11. |
IBXG?s internal compliance program has been certified as meeting all current requirements of the Federal Health Insurance Portability and Accountability Act (HIPAA). |
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| Update |
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What can we say, other than it is disheartening to us to see that IBXG has declined by about 50% since its recent high of $0.225 on 01/23/03 (about 2 weeks)? Other than the obvious being more sellers than buyers, through IBXG's most recent press releases, in our opinion, there is no justification for the decline.
So, in other words, where does this put IBXG today? In our opinion, based on IBXG's most recent press releases, particularly the PR below, IBXG just 2 WEEKS AGO gave us guidance for 2003, and in fact states, that this current guidance could be revised once again upwards, as future deals come to closure.
When IBXG issued their guidance report just 2 weeks ago, IBXG's stock went from $0.16 to $0.225 within days on huge volume. So, what has changed on IBXG besides a lower stock price? Once again, in our opinion, NOTHING!
So, where does all this bring IBXG today? Yes, investor's have many concerns, which have been well publicized, such as IRAQ, the Economy, a sluggish stock market and so on.
AT TODAYS"S CURRENT LEVELS, BASED ON THE PR BELOW, IBXG NOW TRADE'S AT 3 TIMES THIS YEARS ESTIMATED EPS AND GROWING AT BETTER THAN 50%!
Justifiable or not, in our opinion, this precipitous drop in IBXG is unwarranted, and appears poised for a bounce.
Anyway, for those that reacted to our previous emails, this could be an opportune time to double up. For those that have been watching IBXG this may a good entry point. Either way we certainly have no idea how IBXG's stock will react in the future, but only time will tell.
Keep an eye on IBXG, and as always Watch This Stock Trade.
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| Press Release |
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iBX Group Raises Revenue and Earnings Guidance Nearly 70% for 2003
DEERFIELD BEACH, Fla., Jan 21, 2003 (BUSINESS WIRE) -- With the pending rollout of 10 company-owned physical therapy centers and the acquisition of a major legal services organization specializing in HIPAA and OIG compliance, iBX Group, Inc. (OTCBB:IBXG), a publicly-held Florida corporation, announced today it has increased its earnings and revenues guidance for 2003 by more than 50 percent from $6.5 million to $11 million.
In December, iBX Group announced it expected to double year-end revenue from $3.2 million to $6.5 million in 2003 with earnings doubling from just over $300,000 to $700,000 and annualized income from operations doubling from .01 to .02 EPS. However, two developments in the first two weeks of the year will have a significant impact on projected revenue, and the projections could increase dramatically in the weeks ahead if several pending transactions are finalized, according to company president and CEO Evan R. Brovenick.
iBX recently acquired the assets of MediCompliant Solutions, a Florida-based healthcare legal services organization specializing in HIPAA and OIG compliance, becoming one of the first U.S. companies to offer a comprehensive cost effective web-based legal solution for today's challenging compliance issues. First year sales at MediCompliant are estimated at $1.5 million, based on new pending accounts combined with existing clients already under contract.
On Tuesday, iBX's Florida HealthSource subsidiary announced it will open at least 10 new physical therapy and occupational medicine clinics throughout Florida in 2003 as the first major step in the expansion of the company's Physical Therapy and Occupational Medicine Division. The new clinics are expected to generate an estimated $3 million in new revenue during 2003, according to Florida HealthSource management. The additional revenue from this subsidiary alone is expected to result in an increase in earnings up to 1.5 cents per share.
"We came into the new year with several pending transactions and, in less than a month, we have had two more significant developments for the company. These two transactions alone will not only dramatically increase our top line revenue, but earnings per share as well," said Brovenick. "If this is any indication of the demand for our services, this will be a banner a year for iBX.
"More transactions are on the horizon for iBX. As they come to fruition, we will increase the revenue and earnings guidance accordingly," said Brovenick. He added there are several pending developments in the areas of Healthcare Transaction Management and Transcription, Dictation and Document Management as well as Physical Therapy and Compliance.
Based in Deerfield Beach, Florida, iBX Group Inc. (http://www.ibxg.com) develops and deploys innovative, cost-effective methods for integrating financial, administrative and information services for the healthcare industry. iBX is a results-oriented company, consisting of three divisions - Healthcare Transaction Management, Physical Therapy and Rehabilitation, and Technology and Information Services. By creating and utilizing the latest technologies, Internet-based communications and hands-on expertise, iBX strives to meet the needs of hospitals, single and multi-specialty physician group practices and healthcare service organizations seeking to achieve the maximum financial benefit of their accounts receivables by controlling workflow, consolidating administrative functions and addressing compliance issues.
This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. This release contains certain "forward-looking statements and information" (as defined in the Private Securities Litigation Reform Act of 1995) concerning iBX Group, Inc. that are based on the beliefs of iBX Group, Inc.'s management, as well as assumptions made by and information currently available to iBX Group, Inc. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in iBX's filings with the Securities and Exchange Commission.
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| Valuation |
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A penny stock with multi-dollar potential: trading today for about 10 cents per share, but in our opinion, has long-term potential for huge gains. IBXG may be one of next year's BIG surprises, making its current status as an undiscovered stock a rare timing opportunity for investors. Don't overlook this one! We not only consider IBXG an attractive "Emerging Growth Company," in our opinion, but also a "Value Stock" in view of its revenues and earnings. We believe that IBXG has targeted a creative niche in a hot sector.
Relative to comparative companies within the Healthcare sector, IBXG could realize superior growth in business and earnings over the near-to-intermediate term period. A grouping of comparable companies within this sector currently trades at an average price to revenues multiple of 4.79 X. For 2002 it estimated that IBXG should generate revenues in excess of 3 million dollars, and for 2003 significantly higher and continue to be profitable. Thus, when applying the comparative grouping?s price to revenue multiples to IBXG we can arrive at a relative valuation of $.38 per share over the next 6 months.
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| Conclusion |
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"Patients want to do more of their medical management from home, doctors want to provide care quickly and efficiently, and hospitals and HMO?s want to keep costs down," says Jim Gabler, a research director for GartnerGroup?s Healthcare Industry Research and Advisory Services in Stamford, Conn. "All of this relates to technology, and it?s up to CIO?s to find a better way. People say healthcare revolves around doctors and patient care. Well in the months and years to come, the industry will revolve around technology and the CIO."
Given this climate in healthcare today, in our opinion, IBXG is an undervalued opportunity. IBXG is perfectly positioned to meet the needs of their target market with a strong commitment to their suite of services.
Aggressive investors looking for above-average return potential on a portion of their investment capital should give IBXG a serious look.
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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 IBXG 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 compensated fifteen thousand dollars by the company, and additionally received 2 million warrants exercisable into free trading shares of common stock of IBXG at ten cents per share by a third party for the publication and circulation of this report, of which the warrants have been exercised and the stock sold. In addition, IBXG has renewed their agreement for additional fifteen thousand dollars, and an affiliate of II has received an additional 2 million warrants exercisable into free trading shares of IBXG at ten cents per share by a third party. II intends to sell all or a portion of the of the IBXG stock at or about the time of publication of this report. Subsequently II may buy or sell shares of IBXG 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 IBXG including the company's most recent annual and quarterly reports.
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