MedClean Technologies, Inc.(fka MCLN)

[stervc]

MCLN .40 Justification Valuation Thoughts...

I will explain how and why, in my opinion, BioMedReports derive that .40 per share short term target for MCLN that was previously PR-ed, but there are a few more things I think needs to be mentioned for a better understanding. Just know, it is only how I think their team is seeing things with MCLN.

Before this past Friday's news from MCLN, affixing a certain value of the company in relation to their hidden value through their Preferred Shares was basically unknown. Through this news, a higher valuation for MCLN could be confirmed where it is ”kind of” intrinsic in nature, but very clear to some.

From this past Friday’s MCLN news…
http://finance.yahoo.com/news/MedClean-Technologies-Enters-prnews-2197709155.html?x=0&.v=1
… The Company agreed to sell up to 750 shares of its Series C Preferred Stock, in one or more tranches from time to time. The tranches will be sold at the Company's sole discretion, at a purchase price of $10,000 per share, for an aggregate purchase price of up to $7.5 million. …

Now read from the last MCLN 8K and 10Q before the news:
http://knobias.10kwizard.com/filing.php?rid=12&ipage=6639098&SQDESC=SECTION_ENTIRE
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6880919-1003-84722&type=sect&dcn=0001144204-09-057603

…the Company is authorized to issue 60,000,000 shares of preferred stock…

All I can say is that for Socius Capital Group, LLC, doing business as Socius Life Sciences Capital Group, LLC to give MCLN up to $7.5 million in capital to pay $10,000 per share for 750 shares of MCLN Preferred Shares, you better believe they know something and something very big that they have confirmed in my opinion.

Now read some outstanding Socius Capital Group DD courtesy of levelnever to understand the legitimacy of this financing:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=44218653
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=44219037

Bottom line, a standard has been set for the price of MCLN Series C Preferred Stock.

The question is… How many of those 60,000,000 Total Preferred Shares can be used for Series C Preferred Stock to issue? So far, we know that 750 shares are allowed to be purchased for $10,000 per share of its Series C Preferred Stock of which a total of 1500 has been authorized to be taken from the kitty of 60 million kitty of preferred shares authorized to use. MCLN is an OTCBB stock that files regularly and I truly believe that they would not risk putting the company in jeopardy for this agreement not to be true.

To add, as what has been already discussed, the current MCLN management TEAM is the previous management TEAM that came from EResearch Technology which trades on the NASDAQ under the ticker of ERES at $6.00+ per share. So if I had to guess, I really think these guys know what they are doing and are very serious with some major plans in moving forward.

As for an exact valuation, I would just say that now that the standard of $10,000 per share has been set for those Preferred Shares, multiply a million or two or more of those Preferred Shares based on the total amount of shares they can create and see what you get for a dollar figure.

Look at how much a couple of major companies that we all are familiar with below preferred shares trade:

http://www.encyclopedia.com/doc/1G1-16734738.html
Dell (NASDAQ: DELL) preferred stock = $8.25 per share

http://www.bloomberg.com/apps/news?pid=20601103&sid=aDEKfZzI_AUE
Bank of America (NYSE:BAC) preferred stock = $15.00 per share

The list of stocks could go on and on to reflect that you just don’t usually see another company pay $10,000 per share for a company’s preferred stock unless you have confirmation that something significant is definitely going to transpire.

Still, I think that is good, but I think some investors are sleeping on how many Revenues their contract with NASDAQ:MDAS would probably bring too. MDAS has over 33,000 clients of which all are going to need to have some kind of process to eliminate Regulated Medical Waste (RMW). MDAS has contracted with MCLN to be their arm to perform these functions for these companies. MCLN is the company that makes MDAS whole.

Again, for Biomedreports.com to do such reports on MCLN and give a short term target of .40 per share, you just don’t see that very often from them. In my opinion, they seem to be jumping up and down on the table for something that I think should not go ignored. I think they have discovered something of a huge magnitude that will be shortly announced to justify their thoughts since they said…”short term” for this .40 MCLN price target.

The potential of something big exists as MCLN is authorized to eliminate Regulated Medical Waste (RMW) in 50 states to include the state of New Jersey which is the toughest state to get approved of all of the states as indicated below:
http://www.reuters.com/article/pressRelease/idUS141127%2B12-May-2009%2BPRN20090512

As for a MCLN .40 short term Price Target, it's a little challenging, but let me try to justify what I think they are expecting to transpire to justify the .40 per share short term target that was recently PRed. I'll just first say that from their NASDAQ:MDAS contract alone that hundreds of millions to billions of dollars could be generated to justify such. Hang on for a second and let me explain before you say... What the heck!

I say this because after I calculated what I am about to show you and again looked at the potential from the MDAS contract alone, this is why I even said… What the heck! I would first read the post below to further understand the magnitude of the MCLN contract with NASDAQ:MDAS:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43578638

From the post above, you see that MCLN would probably have a standardize $1M for each client that is contracted which would be derived by the amount of pounds of RMW per person from the hospitals/providers that MDAS is already contracted with that will be needing these services. Now from simple math…

$1,000,000 x 33,000 hospitals/providers = $33,000,000,000

That’s a total of $33,000,000,000 of potential Revenue that MCLN is locked in to tap. Ok, that number is a little mind boggling, but do the research and the math yourself and tell me what you come up with. Do I think that they are going to get contracts by every single hospital/provider that is out there to where they will capture all of those Revenues? Heck, I don’t know as just thinking about it seems a bit farfetched, but I do know that all they need is to contract with a small fraction to be worth the .40 per share that the BioMedReports Team had projected for the short term. Maybe this is why they are so confident about such price. Let’s further analyze this.

Let’s figure an Outstanding Shares (OS) of roughly about 650 million shares. Let’s figure that they are deriving their .40 per short term target of .40 per share from a conservative P/E Ratio of 12 to use as their growth rate for that particular Industry. This would mean that they are considering that MCLN has something that would bring them $87 Million in short term Revenues from what I’m going to conservatively consider a 25% profit margin for Income/Earnings in the amount of $21.75 Million to derive a valuation below:

$87,000,000 x 25% (or .25) = $21,750,000

$21,750,000 ÷ 650,000,000 (OS) = .03346 EPS

.03346 x 12 P/E Ratio = Approximately .40 EPS

There are ways that might have been considered easier to derive how the .40 per share valuation was considered, but the above could be at least used as a framework to substitute when we think certain news is released to confirm why that .40 per share short term target was released in a PR.

Please, just understand that this is not me saying this, this is the company's contract with NASDAQ:MDA saying this and me posting this does not mean that it will reach any price of certain highs in the future. So for such a price target to be PRed, they must know something that is done.

Keep in mind that MCLN has a contract with NASDAQ:MDAS to reach over 33,000 clients for MDAS of which could very easily transform into clients for MCLN. It cost about $1,000,000 to pay for the services as I had justified and indicated in the post above. To justify the valuation thoughts I posted above, MCLN only needs to secure 870 out of those 33,000 clients which would give them $87,000,000.

To add, MCLN is still on the Regulation SHO List:
http://www.nasdaqtrader.com/Trader.aspx?id=RegSHOThreshold

According to the SEC, the MMs have 35 days to cover:
http://www.nasdaqtrader.com/TraderNews.aspx?id=ra2007-086

According to the Buyins.net report, so far, MCLN has been listed on the Reg SHO list for 27 consecutive days and is listed on the “Imminent Buyin” list:
http://www.buyins.net/tools/short_list.php?dys=%3E12

This is saying that they have at the very least, 8 days to cover MCLN.

I was believing in MCLN before ever knowing of any kind of involvement from BioMedReports, but I do see them existing here as a plus as likewise for being on the Reg SHO List? I bought MCLN because of doing my DD on it and liking what was new to me. I still like MCLN and I will continue to weather the storm as I believe much more sunny days are ahead.

v/r
Sterling