Microcap Alert .015-.02 price target on AMSZ!
Microcap Alert Issues Research Opinion on AcumedSpa Holdings, Inc. (AMSZ)
Last Updated: August 23, 2010 - 11:23am EST
NEW YORK--Microcap Alert issued a research opinion on AcumedSpa Holdings, Inc. (OTC:AMSZ), a holding company focused on investments in joint venture projects, with a valuation target of $0.015 to $0.02 per share, near-term.
Highlights
- Pending Share Buyback Program
- Two Pending Acquisitions
- Plans to Expand Internationally
- Profitable
- Tightly Held Hublic Float
Share Structure
As of July 27, 2010, the Company had around 146,610,679 shares issued and outstanding, with 99 million of that availble in the public float.
Pending Share Buyback Program
On July 27, 2010, the Company announced it is initiating a share buyback program in order to lower the outstanding share count. The board of directors is developing a plan purchase shares of AcuMedSpa on the open market and then would retire those shares back into the treasury. The goal of the program is to purchase up to 10 million shares which will be retired immediately in order to reduce the outstanding shares by the total amount of shares purchased.
Technical Analysis
The stock is currently pressuring the 50 day moving average at $0.0048, which could indicate a potential breakout in the stock. The public float is very tight among retail investors, and any shares below the 50 day moving average provides for a good speculative buying entry point. The TRIX and MACD are both indicating a near-term move up in the stock at these levels. Due to this tight float, and technical indicators, we have placed the company on 'float lock-up' watch.
Valuation Target
To be conservative in structuring a valuation formula for this company lets take into consideration a share structure at maximum dilution of 175 million shares outstanding, the current shares authorized. Based on a pending share buyback program, pending acquisitions, and a tight public float, we feel it wouldn't be out of the realm to justify a conservative market value for this company in the $3.5 million range. Based on maximum shares authorized of 175 million, that would equate to a price valuation range of around $0.015 to $0.02 per share, which would equate to a 300% to 400% potential return from these levels.
Risks
The company is currently traded on the Pink Sheet exchange, and thus has limited public information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.
Microcap Alert initiated research alert on AMSZ on August 23, 2010, at a price of $0.004
About MicroCap Alert
Founded in 2009, Microcap Alert is a central portal for investors and financial professionals to discover under-the-radar micro and nano cap public companies. The site provides independent research and frequent trade alerts which are distributed to a wide array of financial institutions, trading desks and fund managers. The company enables small startup companies to address a select audience of investors and institutions that are specifically looking for the next great microcap news story. Visit us at www.MicroCapAlert.com
