Wednesday, March 06, 2013 11:19:48 AM
Why SPO Medical Inc's, Partnership With HoMedics Could Prove To Be A Huge Success In 2013
The time to buy SPO Medical Inc is now. On 2/19/2013, SPOM.ob, a leading developer of biosensor and microprocessor technologies for use in portable monitoring devices, announced that it has partnered with HoMedics LLC, since the early summer of 2012, for the distribution of a private-labeled, over-the-counter (OTC) pulse oximeter for non-medical consumer wellness applications. HoMedics is a privately held, family-owned business that manufactures and markets some of the world's best known, most innovative brands in an array of consumer health and wellness and electronics lifestyle categories. Their brands portfolio includes The Sharper Image, House of Marley, myCharge, Powerbag, HMDX Audio, Black & Decker, and HoMedics among others. HoMedics is considered the #1 name in health and wellness.
SPO Medicals new product, through their HoMedics partnership is known as the HoMedics Deluxe Pulse Oximeter, was launched during the fourth quarter in CVS stores, and is currently being promoted and sold throughout North America. The oximeter is based on patented Optimetrix™ technology, which uses proprietary optical techniques to measure certain vital sign measurements for a variety of consumer wellness applications. SPOM.ob and HoMedics have stated that they see substantial upside potential to expand in the drug channel and beyond during 2013, and furthermore HoMedics will look to increase distribution worldwide via its extensive network in over 60 countries. Michael Braunold, Chief Executive Officer of SPO Medical Inc., commented in the Press Release (found here: http://finance.yahoo.com/news/spo-partners-homedics-llc-133000709.html, from the company titled "SPO Partners with HoMedics LLC": "Our decision to distribute under the HoMedics private-label has afforded us access to mass-market retailers worldwide and we plan on expanding our product portfolio to further leverage on our joint-success to date".
About SPOM and the technology behind them
SPO Medical Systems, SPOM.OB, develops and manufactures vital sign monitoring devices. Unique, patented Reflectance Pulse Oximetry (RPO) is cutting edge technology supplying rapid and reliable mobile response. RPO monitors, non-invasively, blood oxygen saturation and heart rate while attached to a single side of the body. Small low-powered battery sensors incorporate wireless functionality, accurate even during physical activity. SPOM has several innovative aspects to add to this field. Their RPO Sensors capture pulse rates and pulse rhythms precisely without requiring tight skin contact, which prevents common occlusions and discomfort, and can be worn comfortably around the clock. It has wireless monitoring functionality, is small and lightweight, which allows it to be embedded in devices as tiny as wristwatches, which helps keep the technology from being limited by physical activity.
Future Technologies - Involving some of their 12 current Patents
SPOM is currently focused on exploiting the multi-billion dollar sports and wellness markets by developing cutting edge products based on their proprietary technology. Their current wellness products include an innovative wellness bracelet expected to be commercially available in 2013, a baby monitoring unit, a sports watch and an oximetry product for sports and recreational use all expected to be commercially available in during or before 2014. Below is a look into what each product offers in their markets that makes them so unique.
The SPO sports watch has been designed to measure continuous hear-rate wirelessly, without the need to wear a conventional chest strap. This is a major and unique practical advantage over current products that exist in the general leisure and wellness market. The watch will be able to read the heart rate without the user ceasing their physical activity, something no currently available, which is possible only through the use of SPO's patented reflectance technology. In addition to the sports watch, SPOM is in the final stages of developing an innovative wellness bracelet that measures the number of activities and calories burned by an individual on a given day. The bracelet, designed for both children and adults, features a display function to continuously measure the number of daily activities against preset recommended goals. SPOM has designed and patented the functionality of the bracelet to be an affordable, simple-to-use, fashion accessory to encourage users to increase their mobility and overall wellness and to wear it with pride. SPOM is also developing an innovative home-baby monitoring device for continuous measurement of wellness information to the parent or caregiver, while the baby is sleeping. This parental reassurance tool gives the company a technological competitive edge in providing an innovative, high performance solution for a market application that is applicable to most family homes.
I envision the release of the above technologies to significantly increase the value of SPOM.ob and its share price. Since SPOM is involved in a growing partnership with HoMedics, they will now have the ability to roll out their products in as many of the 60 countries in their distribution network where they feel their product will thrive.
SPO Medical Inc - Fundamentals and Potential
Currently SPO Medical Inc trades on the OTC.QB under ticker symbol "SPOM". It's share price at the market close on 2/19/2013 was $0.017. SPOM currently has a 52 week high of $0.18. SPOM's most recent 10-Q showed it has a current AS of 100,000,000 shares and an OS of 50,673,348, which gives SPOM a current market cap of $861,127. SPOM recorded zero Revenue for the first 2 quarters of 2012. However, during Q3, SPOM recorded $278,000 in Revenue. During Q3, SPOM's product was distributed through over 94 online websites but was not found in retailers. However, in Q4, the company, SPOM, through a partnership with HoMedics, began selling in CVS across North America. In December of 2012, SPOM announced they had an order backlog for shipments to be shipped throughout 2013. I am fully expecting SPOM's Q4 revenues to surpass the Sales they had in Q3. Beyond that, I am expecting revenue growth for each Quarter throughout their next fiscal year.
Using SPOM's most recent Quarterly sales and its current OS, I believe the company could easily be valued around $0.10. Masimo Corporation, listed as MASI on the Nasdaq, currently trades at a $1.15 Billion market cap, and has a P/E of 19.18. Medtronic, Inc. (MD*), CONMED Corporation (CNM*), and ResMed Inc. (RM*) all trade with similar P/E's and have Billion dollar market caps. This is why when I look at SPOM's past sales potential where they peaked over $2 million, their 8 patents, the new partnership with HoMedics, and the expansion of their product pipeline and distribution network to over 60 million countries, I expect SPOM to end 2013 with a valuation much closer to $0.50 per share. I plan on holding SPOM throughout 2013 and beyond.
This is one of the best plays I have EVER ran into on the penny stock market, and that includes AAP* when it was trading at .0013. I don't know what gains we will see, but I'm fine with holding and finding out. I hope you do your own DD and come to the same conclusion.
Cheers - MM
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