I completely agree. This will be the third transaction the company has done since 2012. Each one has added revenue and growth. Company appears profitable right now with non-cash items excluded, so anything this merger adds goes right to EPS!

I have kept this post in mind over the last few months. Some interesting things have occurred where the company has basically announced profitability in their last release. I inquired about other major clients and the share buyback Multi-million mentioned. The response was that they could not confirm or deny, but that they want to leverage their latest earnings report to "catalyze EPS growth to benefit shareholders, through multiple avenues."

My impression was the company thinks their shares are undervalued, and they are quietly doing things to make things happen.

Again, that's pure speculation on my part. But, I will say they have been quiet these last few months for a reason. It seems to me to be a good one based on their recent release.

The Company just posted a shareholder update via OTC Markets which you can subscribe to receive. Interesting reading and sounds quite positive (in particular if you read the post just prior to this one on the board):

http://www.otcmarkets.com/stock/USRC/news/Unisource-Shareholder-Update-On-Latest-Corporate-Activities?id=107001&b=y

I really don't know what you are getting at. First you state that the number of issue shares are not the number of shares, and now you are talking about something that has been part of every disclosure the company has ever made?

Simple fact is that the company managed to do all of these things, including a transaction bringing the company toward a revenue positive EPS, while not having to issue a ton of dilutive stock. The number of outstanding is now less than what it was in Q1, and they acquired a company providing over $1.6 million in gross revenues.

Not a bad thing in my opinion.

According to all reports, all shares issued are restricted, outside of the reported free-trading. That has not changed much for an extended period of time.

Actually no. I did the math including all of the issuances and retirements that you mentioned below, and the new fully diluted outstanding number appears to be 71,691,983.

Keep in mind, disclosure requirements state that the number of shares outstanding listed must include any and all issuances or other activities that are disclosed in the report. As all of the items you listed are in the report, then they must be tallied into the reported number of total shares outstanding.

This does not mean that the company won't issue more shares in the future, but as far as where things stand now, it appears that they have reduced the outstanding by over 12%, INCLUDING the shares issued to the new investor and for the transaction.

Simply put, over 19 million shares appear to have been retired and 10m were issued, meaning a total reduction of over 9 million shares outstanding.

Very interesting quarterly report from USRC, with positive undertones. Quite surprised people haven’t noticed? But then again this board has been quiet for some time.

There were three main items which really caught my attention:

First, USRC completed a transaction, buying a company called Top Flight. USRC didn’t announce an LOI or an intent to buy the company, they simply just completed the transaction without fanfare and announced the completion. To me, that is a solid move for an OTC company…no fluff, just execution of the plan.

Second, on the financials side; the net loss per quarter is the lowest ever from what I can see. But that’s not even the real story. The Top Flight acquisition has some interesting financial tid-bits which may radically alter USRC’s next report. USRC was only able to claim revenues for Top Flight for a small part of the quarter. But the company included notes showing what “could” have occurred had the acquisition occurred on Jan 1, 2014 instead of May 23. Although it requires a bit of math on the part of an investor, you can quickly see how this transaction brings USRC into a positive EPS. Had the transaction occurred on April 1, the Q2 report for USRC would show a positive EPS for the quarter from my math.

Third, and potentially most interesting: If you go back and look at the total shares outstanding for the Q1 report, USRC showed 81,588,090 shares outstanding. On the Q2 report, the shares outstanding DROPPED to 71,691,983. This represents over a 12% reduction in total number of shares outstanding. According to the report, this also seems to include all issuances relating to the acquisition, as well as new investment, as well as the retirement of shares. So basically, the company appears to have been able to execute the acquisition of Top Flight without diluting shareholders at all (actually the opposite).

So in essence, the Company was able to acquire $1.6 million in new revenues (and growing), conduct the entire transaction in stock, raise a bit of money while placing the entire company on a positive EPS track, all while REDUCING the total number of outstanding shares from Q1-Q2. Pretty amazing to me, and pretty positive for the shareholders going forward.

The fact that the company isn’t trumpeting this loudly is another positive sign that there is still more to come. I am surprised that the stock has not yet reacted and risen based on the new share-base. We appear to be significantly undervalued here based on my read. Will be actively looking at USRC now.

Yo-Yo.

If it was on the ask, it would be even more impressive.

Don't misunderstand me guys. I am long this company. I am just pointing out the tale of the tape currently. We are way undervalued here and should be trading in the mid-teens right now.

Yes, that is what I am looking for. All of the recent trading, including today has been basically selling into the Bid. Not a convincing trend for a rise higher. I am long this company and agree that news should send this significantly higher, but the current trading has a negative feeling to it.

Yet look where we are at the end of the day. Until I see a lot of volume on the Ask, it's not going to where it should be right now.

and the bid was taken, and now the bid's dropped. There needs to be actual buying pressure to take this to where it should be on the ask.

all sales today, no buys?

We were right here last week, and then some impatient shareholder(s) dumped it down to the 4's. I like that the bids are coming up, and it appears that there are some supports in place, but the size of those bids makes this tempting for someone holding a large number of shares to sell. Need to remember that there are a lot of shares that were purchased at .02 and below within the last year. This is a solid gain for those people. The volume and uptick pace needs to be much higher than it is to continue upward momentum. Someone could clear over 200K of shares at .06 right now, and the spread shows a lack of buyer pressure.

Yeah. 206 shares traded Wednesday. Very strange that the volume would suddenly totally dry up like that. And not a single share traded today yet. I want to buy more here, but not with this type of MMing.

This can't be right.... 206 shares traded yesterday?? that's it?

We shall see about that Pierre. I'd love to see another few hundred thousand sold in the fives. Get rid of those impatient holders and really clearing the way for a massive run up.

Bid drop. May be a great chance to get more shares before the big pop that I know is coming

Pierre, I have always agreed with you on that. But recent volatility here suggests more of the same potential until the report comes out. People should realize that and hold on and not panic. That said, I am watching this very carefully. If it does go down I am already prepared to add significantly.

Pierre, I would love to be wrong. But I am also pragmatic. Friday's trading showed impatience. I expect more of that type of action. But once the report is out, this stock will sing a much different tune.

That was quite a ride on Friday. Really got some great prices! I expect more of that volatility heading into the earnings report though, so hang on! We will be going much higher, but there may be some other shareholders who grow impatient prior to the release.

Exactly. I am amazed at what people have been selling today so far. Great pricing for me.

I firmly believe that the company will be coming out with some news shortly. Normally, we see the company pre-announce quarterly results in advance of their filings. But, I also expect that they will talk about the wager increase rates prior to that as they did in early January. All of the current trading activity is "fluffy" as a result, people who are impatient, or who are simply DTing the stock. One thing that may prove different in this quarterly cycle will be EPS, as it looks like revenue flow is rapidly increasing to the point that the stock can peg to an EPS...meaning a significant move higher. A significant percentage of that move may occur prior to any announcements, as the longer term shareholders, who all are aware of the potential here, augment their positions in advance of the reporting cycle for the company. If you look back to historical, the overall cycle is pretty easy to pick out. If all is as I think it will be, the stock should be somewhere around .15-.16 pre announcement cycle, and .18-.21 post, at a minimum, just based on run-rate projection increases using historical announcements as a guide.

Exactly. But all of my research indicates that PPS should head back north of .18, potentially beyond .20. That was a very nice write up on the company from March 7th.

I've been in this for nearly a year. Certainly not selling here, but have been buying at these low levels.

Article from March 7th. Interesting read "Why Seaniemac Looks Good:

http://webcache.googleusercontent.com/search?q=cache:kOjwlB62QgkJ:wallstcheatsheet.com/stocks/gambling-stocks-why-seaniemac-looks-good.html/?a%3Dviewall+&cd=6&hl=en&ct=clnk&gl=us

UM, I don't think you understood Captain's message. He was saying bye bye to you personally I believe.

Whoops, apparently you have to register. Here is the article text as best as I can manage. Sano is mentioned as the last one:

4 Medical Device Companies Worth A Look Based On Risk Mar. 10, 2014 5:19 PM ET | Includes: IART, ISRG, JNJ, SYK by: Invest Chief
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
Summary

With medical devices continuing to see increased demand, there are various ways to gain exposure to this growth based on risk tolerance.
Growth in demand for these devices in Asia is set to grow over the next several years, as emerging markets continue to upgrade current systems.
As the bull market continues forward with some analysts questioning its age and stability, investors should turn to industries that are resilient or in high demand.
(Editor’s Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)


Three months into 2014 we have seen a slight pullback and another leg higher in equities, so far. Economic reports initially showed some weakness from the fourth quarter of 2013, as seen with a weak housing figures, manufacturing, and revised GDP lower. Additionally, Russia's military deployment to Ukraine has also caused investors to question risky assets and the current valuation of the market. Despite these facts, the S&P 500 still managed to log in a new high recently and continues its bull run. The bullish run higher has caused volatility to pullback from its year to date high of 21.44 to its current 14.16. However, I do expect a bump in volatility over the next several months.


While we are certainly in an aged bull market, it is time for investors to begin the gradual switch to more stable, high quality stocks. One such industry that is seeing long term growth is the medical device field. According to a report done by ResearchandMarkets, the market for medical devices will grow to $65.6 billion by next year. Additionally, the report highlighted that North America currently accounts for 40% of medical devices, followed by Europe at 30% and Asia at 11.6%. With an overwhelming demand for upgraded health care equipment in populated Asian countries such as China and Japan, we could see a majority of industry's growth coming from these regions.

With demand for more precise and upgraded health care equipment rising, I believe these four companies with exposure to the medical device field could benefit: Johnson & Johnson (NYSE:JNJ), Intuitive Surgical, Inc. (NASDAQ:ISRG), Stryker Corporation (NYSE:SYK), and Sanomedics International Holdings, Inc. (OTCMKTS: OTCQB:SIMH).

Johnson & Johnson

Johnson and Johnson , according to Trefis, has medical devices as the top contributor to its stock price, at about 61.5% or over $20 billion in revenues. While J&J has a diverse array of products to hedge against any fall in demand, the company's devices focus on cardiovascular diseases, delivery, neurological, etc.

Turning to the fundamentals, Johnson & Johnson has a market cap of $263.22 billion and is currently rated a "weak buy" from analysts. Overall, the stock's valuation ratios are overvalued when looking at a price to sales of 3.69, price to book of 3.55, price to cash of 9, and price to free cash flow of 40. Earnings estimates come in at 24.6% gain this year, 7.7% next year, and 5.92% over the next five years. Margins are quite good: gross margin of 69%, operating margin of 26%, and profit margin of 19%. The company pays a annual dividend of 2.83%.

Overall, Johnson & Johnson is the best bet for investors looking for a large cap, diversified healthcare company that has a good amount of exposure to the medical device field. Shares are not cheap by any means, but growth appears stable and certainly is the more conservative option compared to the other stocks in this article.

Intuitive Surgical

Intuitive Surgical, Inc. is a developer of what is known as a "surgeon's console". Their da Vinci medical device brand assists surgeons during surgery and the company markets the device as a more precise device made to help limit mistakes. According to Trefis, the da Vinci system accounts for 19.6% of the stock price, behind instruments at 43.5% and services at 21.1% of the stock price.

Much like J&J, Intuitive Surgical is no bargain. The company has a market cap of $17.08 billion and is rated a "weak buy" from analysts. Valuation ratios represent an overvalued state currently as seen with a price to sales of 7.54, price to book of 4.88, price to cash of 12.17, and price to free cash flow of 22. However, ISRG has no debt to speak of and 36.93 in cash per share. Earnings growth is expected to stumble this year at 4.7%, 13.44% next year, and 9.55% over the next five years. Margins are outstanding: gross margin of 70%, operating margin of 38%, and profit margin of almost 30%.

Overall, Intuitive Surgical has a much higher exposure to its medical devices in terms of earnings than J&J. However, the company has no debt, awesome margins, and better earnings growth rates over the next several years. With a beta of 1.27, this stock can certainly be volatile during periods and extra hedging may be required for long term investors to avoid losses during downturns.

Stryker Corporation

Stryker Corporation is a medical device company with the largest exposure the field in terms of earnings, making it the most aggressive play out of the three companies. Stryker operates in three separate segments to which it provides medical devices for: Reconstructive, MedSurg, and Neurotechnology and Spine. The Reconstructive segment uses implants for parts such as knees and hips and provides trauma devices. MedSurg is the unit that provides the surgeon assistance devices that help provide precision during surgeries and Neurotech/Spine unit provides devices for highly invasive surgeries such as brain and spine.

Stryker is a $30.98 billion company that has the strongest "buy" rating of the group. However, like the other two companies, Stryker has overvalued valuation ratios: price to sales of 3.43, price to book of 3.42, price to cash of 7.78 and price to free cash flow of 24. Earnings growth is expected to decline -22% this year, rise 9.09% next year and 8.85% over the next five years. Margins are decent with a gross margin of 67%, operating margin of 15.6%, and profit margin of 11.2%. The company pays an annual dividend of 1.49%.

Overall, Stryker may be a larger company that Intuitive Surgical, but Intuitive offers other services and equipment other than medical devices. Stryker relies on the sales of their medical devices much more, as seen through this year's earnings per share estimates: 4.7% for ISRG and -22% for SYK. Additionally, I do think Intuitive has slightly better fundamentals as well. That being said, Stryker does pay a dividend and has had a stronger performance compared to Intuitive over the last year.

Sanomedics International Holdings

Sanomedics is a medical technology holding company that essentially buys businesses that produce "game changing products, services and ideas". Management highlights that they use organic growth and acquisitions to help make the business grow. Last year, Sanomedics acquired a home medical equipment company called Prime Time Medical. The great thing about the deal was that Sanomedics paid $3 million for a company that was generating $5 million annually. Additionally, the company secured a $5 million line of credit from TCA Global Fund LLC to fund future acquisitions back in January 2014.

According to Wall St Cheat Sheet, the typical acquisition target were healthcare based, local brands that could generate national and international returns, contained "immediate impact" for clients in the form of lower costs, or other benefit, and is profitable. Wall St Cheat Sheet's Matt Levy continued to say "As Sanomedics continues to execute its long-term growth plan, the potential is there for the company to eventually generate revenues north of $100 million per year".

The bottom line here is that Sanomedics is the most aggressive way to play the medical device growth. The company certainly has a mentor to follow in Integra LifeSciences Holdings Corporation (NASDAQ:IART), which operates under a very similar business model. To be certain, if the analysts are right and Sanomedics is able to continue purchasing profitable companies at a discount, we could see a jump in price action. However, this is certainly the riskiest way to play the space and would be recommended to high risk, high reward investors.

With big growth estimates projected from the medical device industry, there are a lot of ways to play it. I have offered you a conservative, moderate, moderate-risky, and risky stock that would benefit the rise in demand in medical equipment. Safety minded investors with a conservative style should look at Johnson & Johnson, moderate risk investors should look at Intuitive Surgical and Stryker, and high risk, high reward investors should investigate Sanomedics. No matter which risk tolerance you choose, all will benefit from the continued demand for better medical equipment.

Obviously, these larger cap names are going to have some overvalued metrics as we highlighted above. However, in an aged bull market, there is not a whole lot of sales going on and certainly hard to pick up high growth names such as these for a steep discount. As growth continues higher, these valuation ratios will reset along with the continued progress of increasing revenues, cash flow, debt, book value, etc. Ultimately, growth investors are not as concerned with "value" and are more likely to be the premiums for high growth and demand within an industry.

As technology advances and prices become more affordable, hospitals and medical companies will be more likely to upgrade their current systems or install a new system entirely. Additionally, we are just getting started in the medical device revolution, just imagine what one of these robots will be able to do in 10-20 years.

Source: 4 Medical Device Companies Worth A Look Based On Risk

Nice article on Seeking Alpha mentioning the company yesterday:

http://seekingalpha.com/article/2079103-4-medical-device-companies-worth-a-look-based-on-risk?source=google_news

I probably bought his shares Captain! But will say this, the MMers are not following protocol here. Look at the size against the offers on the recent trades. Why has there been no movement? Strange, and I am keeping track of it. Second time today this has occurred.

I am pretty sure on this one. This has been a good buying day for me.

I would have to respectfully disagree. If there was no substance here, it would have continued down below 0.10, but it hasn't. Instead, we see a significant swing upward so far this week. Volume is light however. So I am watching closely for volume increases, as selling pressure has definitely abated.

There is a lot going on with this company, and most of it seems positive. Historically, when the stock has retraced like this, there has been a significant run up to (and sometimes past) the previous higher levels. I think there is more news pending. It would not surprise me to see this run back well above $1.20. Just look at the historical chart. The moves seem to come very quick, sometimes within a single session.

The general chart looks good. The ELC is a positive sign as are the recent announcements. Seems to be holding around these levels and may be poised for a rapid move higher (perhaps above $2), as indicated by the general chart.

Picking up more shares. I think there is a significant move upward coming.

Buying again now. Very quiet day though. Calm before the upsurge I believe. Surprised we did not top .12 yesterday.

I would not be a seller here. Something obviously is about to happen, as many here predicted.

Well I hope anyone who wants a position here has taken it. Once this starts to move, once the company shows the growth I think is happening, this will move up quickly. Any good news might fire this up on expectations.

What was the news? I didn't see anything come out from the company? Still think this is way undervalued here based on what the company has already stated, and the longer term growth based on those metrics.

Traditionally, this stock seems quite active on Thursdays and Fridays. However, as we sit here right now, not a single share appears to have traded today. That said, the offers have changed significantly, showing the potential path higher with modest buying.