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Monday, 10/19/2009 7:28:52 AM

Monday, October 19, 2009 7:28:52 AM

Post# of 44388
Article in Wallstreetcorner.com from July by Larry Oakley
http://www.wallstreetcorner.com/new_lop.html

Current Opinion:

Date Posted: 07/23/09

Connectyx Technologies Holdings Group, Inc. (Other OTC: CTYX)

I interviewed CEO Ronn Schuman on Tuesday, 7/21/2009. It’s always a pleasure to interview a CEO who is enthusiastic about his products & his company’s potential, especially in this unusual economic climate. I agree with his enthusiasm, because he has unique consumer products that I believe have a very substantial market.

What CTYX Is & Does

CTYX provides products in the healthcare market, including its Personal Health Record, MedFlash ™, an easy to use Personal Health and Lifestyle Record & Portal that is USB flash drive enabled. Schuman’s goal is to reach 1.2 million members by the end of 2011 through continually expanding his company’s distribution channels & targeting key acquisitions in the second half of 2009. I asked him the price of MedFlash™ – he said it’s very affordable at $29 to $30 for the first year & about $19 for sequential years.

MedFlash™

MedFlash contains an emergency flash drive with a Web portal and 24/7 emergency call center access, which contains the owner's complete medical & key related information. Stored information on the MedFlash can be accessed on any computer, securely with complete privacy for the members.

Why CTYX’s Timing is So Good

CTYX’s strategies for the storage & communication of electronic personal health records (EPHR), through its MedFlash™ & another product, MedSync™, falls in line with the government’s plan to make investments to ensure, within five years, that all of America's medical records are computerized. The government’s plan is to invest in health information technology, prevention, & care coordination, which will help reduce health care costs by $2,500 for a typical family. The Economic Stimulus Plan, for example, urges all U.S. residents to maintain their own electronic health records, which will not only save billions through cutting waste & eliminating the need to repeat medical tests, but that it also will save lives by reducing medical errors.

Industry leaders are vowing to reduce the rate of projected growth in health care costs by 1.5% per year over the next 10 years, for a total savings of $2 trillion. My opinion: Regardless of whether the federal government does what it plans, I believe that the idea of U.S. residents maintaining their own medical records will certainly catch on & grow. When we moved a couple of weeks ago from Western NC to this area near Hilton Head Island, SC, it would have been very handy to just be able to send an email to our local doctor here with the information we would have had on our MedFlash™.

CTYX’s Progress

CTYX is completing its 6th month of operations for Fiscal Year 2009 and Schuman says he is pleased to announce continued growth in new sales opportunities & market expansion of the company’s EPHR – MedFlash™.

He commented: “We have added staff & now employ five full time associates & over a dozen independent sales partners who are building additional markets for MedFlash™.

“MedFlash™ continues to gain momentum & is currently being sold at 2,000 retail stores nationwide & is also distributed through drug wholesalers to over 20,000 independent medical & pharmacy groups. I am pleased to announce that Cardinal Health Care, one of the largest medical distribution companies, is currently supplying Kroger, Fred Meyer, QFC, Medicine Shoppes, Ralphs, & HEB with MedFlash™ for resale to consumers. In addition to retail outlets, MedFlash™ is being sold as a promotional incentive with affinity groups -- currently, MASA and MedJet Assist National emergency transport membership organizations. We are also optimistic, but cannot guarantee, that, over the next six months, this category of business will dramatically increase.

“We believe that EPHRs are beginning to gain traction in the market. Companies, like Google & Microsoft, are educating the consumer on this type of product. Their educational efforts help us to sell the concept & need for individuals to maintain their own records. We have worked hard to position ourselves to capitalize in this new market. Our next step, which is critical to our ability to succeed, is to ramp up our marketing & advertising. With that in mind, we have developed two new line extensions, a gift card & a prepaid card program, all replicas of MedFlash™, & a 30 day free trial for our MedFlash™ Web Portal that will open up two new market opportunities, on air TV sales & Internet sales, all of which we believe will accelerate our penetration. In addition, we are preparing to launch MedSync™, a powerful new program that is being written to allow for the MedFlash™ device & portal to synchronize with other programs, including companies like Google Health & Microsoft Health Vault. It is management’s opinion that MedSync™ will broaden our opportunities in the market & assist us in keeping pace with the ever changing health record environment.

“We have also added four key members to our management team. Last year, Al Forcella joined us as our Operations Manager. He has been CEO, General Manager, & an independent consultant with a history of growth & turnaround management for a number of health care companies.

“Michael Robbins has been our consultant for the past year & now has joined us as our VP of Information Services. He is coordinating our product development of MedFlash™. He has led a variety of strategic business initiatives during 25 years as an independent consultant to start-ups, private companies, & public institutions including The Fortune 500 & small to mid-size companies along with a public utility & a state university.

“On May 26, 2009, we announced we appointed William E. Carlson, M.D. as our Chief Medical Officer. Our Board of Directors also approved his appointment as a Director of the Company. Dr. Carlson is a Board Certified Orthopedic Surgeon who has been in practice of his specialty since 1986.

“On March 29, 2009, we announced that Myron Holubiak joined our Board of Advisors. He is the former President of Roche Laboratories, USA, a major research based pharmaceutical company (12/1998 to 8/2001). Prior to this, he spent 15 years in a variety of marketing, sales, & executive positions with Roche Laboratories, co-founded Emron, Inc., a health care consulting company, & served as General Manager of The Plymouth Group, the consulting division of IMS Health, Inc. In 2002, he was a partner, President, & COO of HealthSTAR Communications, Inc, the largest private health care marketing communications company.

“As CEO, I want to reinforce that I have prioritized two key initiatives for Connectyx. Firstly, is to continue with our plans to grow revenues through marketing & selling of our primary product: MedFlash™. Secondly, and just as important, is to begin preparations necessary to successfully file a Form 10 with the SEC in order to become a “fully reporting” public company. If we are successful in achieving these goals, the Company will then seek to evaluate the prospects of applying to the OTC Bulletin Board.”

My Opinion

I like what I see so far. I suggest that you do your homework on this emerging growth situation. I think that CTYX is at the right place at the right time – its market is beginning to unfold. Ronn Schuman plans to raise up to about $3 million for expansion & achieving a listing on the OTC BB. Assuming that he is sucessful in doing that, I see his company’s growth accelerating at a fast pace, because what his company needs to expand rapidly is some carefully directed advertising.

While the company is still at the beginning of its history, it has begun to have some modest growth. For example, on 7/7/2009, it announced it posted its unaudited financial statements for Q2 ended 6/30/2009 -- it increased revenues by 45% & reduced expenses by 20%, thus decreasing its net loss by 50% for Q2 of 2009 as compared to Q2 of 2008. It had a net loss of $79,679 for Q2 of 2009 versus a net loss of $158,459 for the same period in the previous year. This is the second consecutive quarter in which the Company has substantially decreased expenses in 2009 compared to the same time periods in 2008.

CTYX posted revenues of $101,738 for Q2 of 2009 versus revenues of $70,156 for Q2 of 2008, an increase of 45% -- modest, but a good start for a new emerging situation. Its lead product MedFlash™ is currently being sold in retail stores nationwide, & is distributed through drug wholesalers to over 20,000 independent medical & pharmacy groups, including Cardinal Health Care & Amerisource Bergen, two of the largest medical distribution companies, along with retailers in key markets. In addition to retail outlets, MedFlash™ is being sold as a promotional incentive with affinity groups -- currently, MASA (Medical Air Services Association) & MedjetAssist, leading emergency transport membership organizations. These sales via several venues of distribution are rather good considering that the company is at the beginning of its initial growth phase.

Schuman says: "We are excited about the results Connectyx has achieved over the first six months of this year. If we are able to continue to increase our revenues while controlling or even reducing our costs further, we can count on achieving breakeven by the end of the fourth quarter of this year."

CTYX’s unaudited financial statement for Q2 2009 is available at www.pinksheets.com. Check www.connectyx.com, & www.med-flash.com. CTYX is located in Palm City, FL, & is trading at $0.006. Call its PR firm at 407-389-5900 for further information.