BIOHEART MCLN'S ANALYST
see below the analyst's conclusion, do you believe it? opinions welcome!
"Based on our analysis, we believe that MedClean is uniquely positioned to become a serious player in the RMW disposal market. The Company’s management team has done a remarkable job, growing revenue to $1.56M with operating profit of nearly $350,000 in 3Q09, versus a loss and revenue of only a few hundred thousand in 3Q08. With the right product for the right market, the Company should continue to enjoy success and grow at a rate faster than the industry average. Presently, the peer group of publicly traded companies, including SRCL and SMED, are trading around 4x trailing twelve months revenue and anywhere from 15 – 30x trailing twelve months EPS. MedClean currently trades around 7.0x twelve months trailing revenue.
Following a good 3Q09, we believe that MedClean could generate revenue in the $2.0M range in 4Q09, up from $1.56M in 3Q08. Also, our preliminary forecasts project that MedClean revenue could reach the $12-15M range next year, with net of $2.0 -$3.0m. Considering the high growth rate, and level of profitability, we believe that the shares could reach $0.14 in the near term, which reflects both a 30x on 2010E net, but also 8x our preliminary 2010 revenue forecast. Given that the stock is still currently under the radar of most investors following this space, we believe the shares are attractive at current levels. As investors become more familiar with the MCLN story, and management continues to execute, this news-driven stock could reach $0.40 in 1H10. Thus, we rate these shares Speculative Buy."
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