Next Big Mover in Medical Small Caps
Written by M.E.Garza
Sunday, 29 November 2009 15:46
We have been keeping an eye on this stock for a little over 3 weeks. Last week, just as it emerged from sub-penny trading levels, we finally reached out to the management team and interviewed them at length about their plans, expectations and current limitations. After an inital lengthy discussion with them, we feel confident that our readers will like this company for many of the same reasons that initially caught our eye.
MedClean Technologies, Inc. (OTC: MCLN) engages in the design, sale, installation, and servicing of onsite turnkey systems to treat regulated medical waste. It provides MedClean systems to hospitals and clinics as a solution to incineration or off site hauling of untreated medical waste. The company?s MedClean system employs various equipment and machinery, including an autoclave vessel to sterilize the medical waste; a shredding device, the MedClean Shredder, to convert sterilized waste material into confetti-like material qualifying the end product as municipal solid waste (See the comprehensive video on the right).
We believe the product is a game changer in the Regulated Medical Waste space and it has already begun saving hospitals and clinics millions of dollars by affecting not only how they handle the often times hazardous waste material, but also in regulatory compliance fees and reporting requirements.
As we mentioned earlier this weekend, we feel that the potential moves for this equity will make our now infamous BioElectronics (OTC:BIEL) pick look like child's play. Some of you may recall that we did help call attention to BIEL's technology at the sub penny level before it moved to $.12 before stalling and becoming a "buy on rumor sell on news" penny stock. Things may change for BIEL if they ever finally get their FDA approval, but even then, the billion shares of trading float have become a huge anchor to the stock.
Investors who invested in American Scientific Resources, Inc's (Pink Sheets: ASFX) FDA approved home needle destruction device, the Disintegrator(TM) and Disintegrator Plus(TM) should also get very excited about this medical waste play. ASFX.PK ran from .003 to .08 based on a needle dispenser (one product) called the Disintegrator. They traded millions of shares churning through the shares to get that to the .08 level w/o the transparency of the share structure.
Another one of our recently profiled companies, Viking Systems, Inc. (OTCBB:VKNG) recently ran from $.003 to $1.10 on news regarding a contract with the U.S. Army over a period of four days. VKNG also appeared on the SEC's Regulation SHO compliance tool list (like MCLN does today [more on that below]).
MedClean Technologies, Inc. (OTC: MCLN) looks more bullish and attractive to small cap investors than any of these other companies, but don't take our word for it. Look at the chart.
Our published report on the company Tuesday will mark the first time any publication or news portal will call attention to the company and their product. The management team does not believe in hiring penny-stock pumpers and promoters an have never one so. This will be the first comprehensive report on the company with quotes and information from the actual management team.
Here are just a few of the bullet points that will be discussed in more detail in our special report on Tuesday morning:
* MCLN's stock has just emerged from the sub-penny trading level and our own short-term trading target of $.40 is based on our own in-depth technical, fundamental and financial analysis of the company. A six month trading target of $1+ is very much possible, but not likely sustainable without future growth and reported income variables which may or may not be part of the company's immediate plans.
* MCLN has been on the SEC's Regulation SHO compliance tool list for 19 consecutive days and is now high on the market maker's "buyin imminent" list. In our opinion, continued volume will force the market makers to cover and help fuel prices during the next 48-72 hours- exploding higher as demand exceeds supply.
* In 2008, MCLN posted a loss of 7.8 million and in the 3rd qrtr of 2009 they were cash flow positive on an EBIDTA basis. Third Quarter Revenue Increases 108% Year-Over-Year.
* MCLN was recently awared a substantial MedAssets Supply Chain Systems Contract. MedAssets (Nasdaq: MDAS) trades at over $23 per share and they partner with healthcare providers to improve their financial strength by implementing integrated spend management and revenue cycle solutions. MedAssets serves more than 125 health systems, 3,300 hospitals and 30,000 non-acute carehealthcare providers.
* Thanks to orders from hospitals and clinics like those, MCLN's management team has informed us that they are running at full capacity and still experiencing an accumulation of unfilled orders.
* MCLN's management team helped take their previous company to the NASDAQ and they identified and protected intellectual property w/ patent application entitled “Containerized Medical Waste Treatment System and Related Method.” The group previously worked together at eResearchTechnology, Inc- where they helped grow the company's market valuation from $27 million to a peak of $1.5 billion, receiving recognition from Fortune Magazine as the number two fastest growing company in America. They recognized a fantastic new market opportunity with MCLN and are building that vision now.
While we certainly hope you get as excited as we are about MCLN, we urge you to do your own research and wish you only the best in your trading and investing.
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Disclosure: Long MCLN
AI
