Zacks very high on FCHS
OUTLOOK
Industry Medical Service
First Choice Healthcare Solutions Inc. is a rapidly
growing provider of patient-centric care offered
through "Medical Centers of Excellence" which are
not owned by physicians. Currently concentrating on
Orthopaedic and related care the company is
expanding in what is, for it, an almost unlimited
market. As the company grows we expect higher
pretax margins as corporate overhead remains
relatively constant. Our target price is $2.00 a share.
I see it their way, at $100 per person revenue per year today and having stated they can go to $300 per person per year in their 1st market Melbourne FL, just think what their revenue could be in Florida alone.
If they cover just 5,000,000 population area in FL that would be $1.5 Billion in revenue and its a very high cash flow business. That is just one state, they do plan to go to multiple states. With $30 million last year in revenue that would be 50 times or 5,000% growth and the stock would likley go 100 times higher when they reach $1.5 billion. It is the best growth stock know of.
This is why FCHS is my #2 position have.
Fidelity has the full report dated Jan 2017, but it does not seem available for free on Zacks site.
Small snip from report:
KEY POINTS
Allowing Doctors to be Doctors.
Based in Melbourne, Florida, First Choice Healthcare Solutions is focused on building localized
integrated care platforms comprised of non-physician owned medical centers of excellence in
specific regions of the Southeast United States. Future growth is not limited by geography.
Current specialties are Neurology, Orthopaedics, Spine Surgery, Interventional Pain Medicine
and related ancillary and diagnostic services. The company's flagship platform serves Florida's
Space Coast region managing over 100,000 patient visits a year.
The company's strategy is to establish a significant presence in Melbourne, Florida achieving a
base to generate approximately $50 million annual revenue while replicating its Melbourne
model in other localized geographic markets with similar demographics throughout the country.
First Choice Healthcare Solutions aims to establish a national network of
integrated Medical Centers of Excellence serving specific geographic markets.
These Centers focus on Orthopaedic care and treatment and cost between $6.5 million
to $10 million each to assemble. Based on First Choice s business model and various
factors associated with a specific geographic market, each system would consist of 8 to
10 doctors of various disciplines, but mainly Orthopaedic surgeons, and be capable of
generating between $25-$50 million a year in revenue when fully built out with the
addition of ancillary and diagnostic services. Effective May 1, 2015, First Choice signed
an Operating and Control Agreement with The B.A.C.K. Center, which generated total
revenue of $9.8 million for the 8 months, which compared to generating $13 million in
both 2013 and 2014 for the full years. Effective October 1, 2015, the Company, through
its recently formed wholly owned subsidiary, CCSC Holdings, Inc., acquired a 40% interest
in Crane Creek Surgery Center and is entitled to 51% voting rights. The Company paid
$560 thousand for the 40% interest. For the three months ended December 31, 2016,
Crane Creek generated revenue of $1.12 million and operating profit of approximately
$350 thousand in its first full quarter of ownership (Q415).
Attractive career alternative for doctors. Working for First Choice, physicians are freed
from the day to day administrative burdens of managing their own practice and have
greater annual income potential. Moreover, they enjoy an enhanced quality of life and are
able to deliver better patient care through the use of First Choice s state-of-the-art
equipment and through collaborative care coordination with other First Choice providers
and specialists on its team.
