From Sparky: Thursday 04/01/04 1:28 am cst
Dear Fellow HSM Members,
Last Chance!
GoHEALTH.MD, INC (GOMD) @ 43 Cents!
While structurally GOMD can best be described as a holding company, the fact is the company presently holds nothing!
So why, one could rightfully ask, is Sparky recommending the purchase of holding company without holdings?
Well for starters, GOMD has what by industry wide standards is a very clean balance sheet. As of 09/30/2003, the most recent quarter reported, there were 25 million shares authorized, about 18 million shares outstanding, and a trading float of about 4 million, of which only about 1 million shares are free trading.
Combine this backdrop with the company's 03/24/2004 news release, which stated that GOMD's Board is about to consider, in April, the acquisition of three operating companies; and BINGO, Sparky thinks these thinly-traded shares are grossly undervalued - in fact, they remind Sparky of TIGR shares last December @ 5 cents!
In addition to GOMD's tiny free-trading float, Sparky finds the absence of any non-profitable subsidiaries to be a huge plus. Specifically, from an earnings standpoint, the income generated by any acquired entities will not be wasted to offset losses from some existing division, a conflict that's quite common when holding companies go acquiring things.
Accordingly, so long as GOMD makes the right acquisition decisions, and Sparky's very sure they're about to, we should see some real and long-awaited earnings almost immediately. And once that milestone is reached, these undervalued GOMD shares will then enjoy the luxury of a price earning (P/E) multiple.
Now once it becomes widely known who the people are who will be overseeing, and running, the companies about to be acquired, Sparky thinks the Street will quickly realize the explosive near-term potential of these GOMD shares.
So remember, GOMD shares are about to be in very short supply. So do acquire while you can, but don't try and split pennies, or nickels, or you'll miss out on many, many dollars. And if anyone thinks GOMD shares are hard to accumulate now, just wait until after we get some more descriptive news.
To conclude, Sparky thinks that these shares are a great buy anywhere around current levels and he knows from all the feedback received over the past week that they simply can't be bought, at least in any quantity, below Best Ask.
Respectfully,
Sparky
