Good Morning Readers And Welcome New Subscribers!
It’s finally here readers – Our new pick is OCLG – Oncologix Tech
Oncologix is a fully reporting, diversified medical holding company that operates and manufactures Class II medical device products, delivers Personal Healthcare Services, and Home Medical and Durable Medical products nationally.
For its clients, Oncologix provides FDA approved medical devices, state licensed personal healthcare services and Home Medical Products.
One of the biggest pieces of information we found cleverly hidden in a press release from Jan 16th, 2015 is this: "We are on track to close on a potential acquisition within the next 45 days with an additional durable medical equipment company with annual revenues of approximately $9.8M generating over $2.M in positive EBITDA."
This would be a huge acquisition and a huge development for this company with the newly added revenues more than doubling the current annual.
- Fully reporting company trading in the always booming healthcare sector
- Trading at sub-penny levels, last of .0067
- Tiny market cap around 1M
- Revenues of nearly 3.7M in 2014 + 600+K profit
- History of being a huge multiday runner, ran from .0025 in January to a high of .012 in late February.
- Very recent highs nearly double the current price, recent high of .012 less than a month ago
- Just recently, OCLG acquired EsteemCare Inc.
- Company is on a mission to increase shareholder value and reduce convertible notes
- Over the past few months retired similar notes, eliminating the issuance of over 55M shares.
As you can see above, there are many key points to touch on with OCLG as this truly is a great little company.
Most recently OCLG announced that it is continuing its pursuit of debt reduction and increasing shareholder value.
- On Feb 24, 2015 they announced that over the past few months they had retired convertible notes which eliminated the issuance of over 55M shares.
- On Feb 11, 2015 OCLG reported that it had seen immediate positive results after the acquisition of EsteemCare Inc.
The company’s new marketing initiatives have added ten additional physician referral sources in two new MSA markets.
Additionally, the company made adjustments to internal processes that have resulted in a 25% increase in gross margins and an 11% increase in revenues within the first four months of operations.
OCLG has huge revenues and gross profit for a company trading at sub penny levels with such a tiny market cap.
- In 2014, OCLG had nearly 3.7M in revenues and 822K in gross profit.
- Revenues for the first quarter 2015 were $1.161M, up 60.3% from $724K for the comparable period in fiscal 2014.
- Gross margins for the first quarter fiscal 2015 were $300K, up 30.7% from $230K for the comparable period in fiscal 2014.
- General and administrative expenses for the first quarter fiscal 2015 were $454K, up from $277K in fiscal 2014. This was due primarily to general and administrative expenses from our acquisition of Esteemcare.
- During the past twelve months, we have repaid over $1.515M of company debt and financing agreements.
- Cash provided by financing activities was $817K for the first quarter fiscal 2015, up from $86K for the comparable period in fiscal 2014
Key Company Activities over the past 12 Months
- Acquisition of Esteemcare Inc. effective September 2014 - $1.7M in annual revenues
- Obtained 10 new physician referral sources for annual projected revenues of $140K
- Revamped staffing and consolidated positional responsibilities to position the company for expansion in to new markets.
- Expanded respiratory therapy services into3 new markets
- Acquired Amian Health Services December 2013 - $1.1M in annual revenues
- Continued reduction in non-essential FTE employees.
- Continuing with final product redesign for Dotolo Research Toxygen-II hardware system and new disposable speculum products
- Executed a $4.0 million line of credit facility with TCA Global Fund
- Repaid $107K of convertible debt between October through December 2014 from operating capital preventing approximately 40 million shares from being sold into the market.
Erwin also noted, "We are on track to close on a potential acquisition within the next 45 days with an additional durable medical equipment company with annual revenues of approximately $9.8M generating over $2.M in positive EBITDA. With our continued acquisition and growth strategy, we strive to grow our annualized revenues to $35 M by year-end 2015 with positive EBITDA exceeding $3.6M
Our stock price does not accurately reflect the success of our operating activities and remains severely undervalued. With our continued execution on our acquisition and growth plan, we are confident that our stock value will rise in the coming year to its true fair market values."
The DD is truly mind blowing for a company trading with such a tiny market cap and at sub penny levels. If these numbers don't grab your attention, nothing will!
Good luck
-The Professor
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