~EXPECTING NEWS~

[tvsoccerdad]

NEWS OUT...SHOM RECORD PROFITS for the QUARTER with more news to come about merger

07/19/2011 10:36AM MWUS Southern Home Medical Announces Record Revenues and Profits for the Second Quarter USOTC

SHAREHOLDER AND ASSISTANT MODERATOR-WITHMYOWNHANDS

I live in New York and went to visit the company a couple of days after they announced a letter of intent for a merger. It is going to be with a group of medical clinics that could push the company's revenues to $7 million dollars in its first year. I met Jeff Sarvis, Brittany Toole, Chris Ducker (who I also talk to every two weeks) and about seven other employees including Jeffs daughter, and have spoken with Dr. Lakernick and Caroline Bell, two different franchise owners. I saw shipments coming in the door and out the door during my two hours there as well as monthly sales goals all over the walls. Running a profitable business was the main focus and the company reported better numbers than those goals. Jeff is also very community minded and is working on clearing adjacent property for a town park The franchise owners talked about the macro picture, that this is a great political environment for their business, that Medicare always pays, and the industry picture in terms of growing demand for staffing is very bright. They both talked about their businesses as brands and said Jeff always has their backs. One thing Jeff told me I'll tell you even if it is not in black and white print yet, is that the costs to own a franchise is going up. I've heard from Henry Harrison over at IR, even though this is not in black and white print, that the company has received inquiries for franchises from overseas. Jeff also (hush hush) showed me office equipment that would go in one of the clinics IF they close the deal. What that meant simply is it is not a B.S. press release. He wants this deal to close. As for staffing, the Encore side is growing rapidly. If you look at past press releases the new and old franchise owners were talking about 40% growth from new initiatives. And even though I dont have the release in front of me, I think the bottom line net margins last year for Encore was almost 25%. The Durable Medical Equipment busines (DME) which makes up a majority of their sales is witnessing margins that are soaring. When I give my very lofty price targets, I imagine a company at a well deserved multiple of earnings. Furthermore, I imagine the stock going through a short squeeze above ten cents. I have to tell you that I was BLOWN AWAY by their profit margins in the second quarter. Could Jeff build this into a $20, $30, $50, $100 million dollar company? It will be fun watching. I plan on being here for three more years. I certainly recommend investors give the company till March 2012 which will mark the one year anniversary of the plan they laid out. I suggest investors look at that first March 2011 press release and see that they've been delivering.