I read through the most recent statement from Mr. Laky and through the board posts after the 3rd qtr result were announced and I copy and pasted what I considered was relevant information.
From the PR:
* Current backlog is $1.9 million, an increase of 73% from $1.1 million at December 31, 2009.
* 11 quota-carrying distributors, targeting 41 states and Canada with 40-plus sales reps. Each has assumed a two to four unit goal for 2011 with an average unit sales price of $600,000.
* Two distributors purchased initial systems to establish waste processing centers in their territories. Systems are in backlog and are scheduled for delivery in the 1st and 2nd qtrs of 2011.
* Created a pipeline of new business opportunities of $25 million as it heads into 2011.
* Forged partnerships with industry consultants, actively working with over 700 health care organizations to lower their costs. Such relationships continue to introduce the company to the "C" suite to help shorten sales cycles.
* Currently the IMWTA has 51 active members in the organization and continues to grow daily.
* MedClean is now positioned to offer its technology as a service by collaborating with its IMWTA partners to address the needs of both large and small quantity medical waste generators.
* Collaborating with a nationwide network of transporters enables the Company to leverage its technology to address customer needs while growing a recurring revenue base. A catalyst for the company's growing pipeline of business opportunities and provides access to all size waste generators, effectively doubling the Company's target market. In the past the targeted market was limited to hospitals with 300 beds or higher.
"We are poised and ready for a break out results in 2011 and beyond," commented David Laky, MedClean's President and CEO. "We believe a strong backlog, rapidly increasing pipeline, a trained distribution channel, excellent industry partners, and an expanded technology and service offering position the Company for exponential growth over the next five years. Our current outlook based on booked business, a strong pipeline, and the company's conservative revenue recognition policies based on system delivery calls for first quarter revenues between $1.0 – $1.6 million, second quarter revenues between $1.6 – $2.2 million, with revenues targeted to continue to increase into the second half of the year."
Mr. Laky continued, "The management team at MedClean understands that the market evaluates us on results. We continue to balance our ambitious growth objectives while minimizing fixed cash overhead expenses as we move toward positive cash flow and profitability in 2011. The company has access to capital to support its operations to ensure we can execute our growth initiatives in the future."
Relevant investor's post:
Slyder75's:
With the backlog, a $3M market cap in a speculative company with this much potential is a friggin' joke!
The beneficial pieces that I take from the Q and subsequent PR are the following:
1) Everything in it is trending positively. A/R, contracts table, gross profits, cash burn rate, etc.
2) contracts sold to known partners/distributors with signs that more are on the way.
3) $25M of qualified business opportunities moving into 2011. This leads into SSRs and Consumables which have immense profit margins.
4) The company is finally running as lean and mean as it possibly can. They need cash in the short-term, and I would likely expect the share count to increase close to or slightly over the 800M mark. It's unfortunately unavoidable.
Moving through 1st quarter 2011, the contract backlog should grow substantially during that time, and I do expect another contract or two before the year is done. If we model system deliveries off the Gamma/Barnett deals, significant revenues will not be reported in their financials until 4Q 2011 to 2Q 2012 IMO.
PCAP22's
I don't think the stock will go lower at all as a matter of fact. The valuation is in line with where the stock price is. Manatuck has been selling on a systematic basis to what I believe is realigning their portfolio. Those shares have been bought by retail just like you and me. I don't see any holders selling this into the ground at all. In fact, I see this company's set up and realize that it needs time to produce and that they are TURNING AROUND this business that didn't have ANY national exposure or recognition.
1. Product
2. Place
3. Price
4. Promotion
They have the product, they are creating a market place niche and covering it with sales folk who will eventually be successful b/c of the already receptive distributor network. Their price is cheaper than anyone elses (the 25% online). Their promotion of the product will come from the contracts that they have right now. Once those get up and running then the industry will "talk". They will have the network in place to produce the product the quickest and the cheapest. Not to mention the Green Technology that always looks good when looking for tax breaks.
yznhimr's
However look at Sales and Service Revenues (SSR) etc. from 2nd Q to 3rd Q.
SSR: 2Q - $131,758, 3Q - $306,825 (+132.9%)
Cost of Sales: 2Q - $71,674, 3Q - $53,084
Gross Profit: 2Q - $60,084, 3Q - $253,741 (+322.3%)
Net Loss: 2Q - ($1,081,609), 3Q - ($753,682)
Albeit earnings weren't a home run but financials are trending positive. IMO the stock price should go up from here. Just wait until contract revenues start pouring in. NUKE CITY.
TXX's
$1 million annual cash flow, PPS = .021
At current PPS of .005, the annual cash flow would have to be $233,000.
Valuation Model - A MUST READ
This is simple but exciting. The VALUE of an investment is the PRESENT VALUE of future cash flows.
Using 2.5% interest rate, the following are valuations and related annual cash flows based on 20 years:
$20,000,000 valuation - annual cash flow $1,280,000 - PPS .027
$30,000,000 - $1,924,000 - PPS .041
$40,000,000 - $2,566,000 - PPS .055
$100,000,000 - $6,414,713 This is .137 cents, Ladies.
If MCLN is for real, they should make much more than the above each year.
How about $20,000,000 per year, valuation is $311 million or .428 cents
At the current level of .005, the annual cash flow would be
Good Luck everybody!!!
MCLN LONG
AI
