PPJ Healthcare Enterprises Inc (PPJE)

[jp7204]

Read this news
This was a article put out in late 2009 about PPJE. It sounds like PPJE is not telling the complete truth about their future. I am beginning to wonder if any of their contracts are legit. Especially pay attention the the paragraph about the R/S. Their opinion has changed.



PPJE VALUATION ANALYSIS - why will it be more than a penny by end of 2010

Here's why I believe PPJE will be more than a penny by end of 2010. PPJE is in the health care services industry, which is more than a $1.7 trillion industry. PPJE is in the Electronic Medical Records business which has been mandated by Obama for all hospitals/clinics. http://www.reuters.com/article/press...009+MW20090406

If we look at the history of this company, it was a successful company back in 2005, 2006. Here's news in Aug 2005 that has details on a contract that PPJE CEO 'Chandana Basu' signed with a large multi-specialty medical clinic and pain management center, that can double the company revenues to $4 MM.
- http://www.marketwire.com/press-rele...ith-657244.htm

In 2005, 2006, PPJE(then was HBSV) had the experience of generating more than $20MM per year with the same CEO that we have today.

PPJE hit a snag in 2007 & 2008, needed to shutdown the operations, and reemerged in Aug 2009. Its a second chance for PPJE to make it big, and till now, based on the progress in the first 6 months, it has done exceedingly well. During the second half of 2009, PPJE started with taking money from shareholders to support day to day operations, was able to sign some contracts, and I believe it now has enough cash flow from the signed contracts to take care of its business, and to sign many more new contracts.

During the past 4 months, PPJE has already signed contracts that can yield in excess of $1.5MM. PPJE is signing contracts with former clients, and is also signing up new clients. PPJE is hiring its former employees
, who can bring many more contracts and revenue to PPJE.

PPJE is in the process of extracting $4.5MM assets from its former client/director.

PPJE is going to give a 20% dividend on Nov 30, 2010 for all shareholders as of record Dec 1, 2009. This means there won't be a reverse split till Nov 30, 2010. Financially it doesn't work out for the company to reverse split the stock, and give a 20% dividend based on the shares before the reverse split. It doesn't work that way. So end of discussion on reverse split. Here's the link.
http://www.marketwire.com/press-rele...nd-1084852.htm

With respect to PPJE valuation estimate, tvmetguy has come up with a good estimation for the current fair price - http://investorshub.advfn.com/boards...ge_id=48440712

with respect to PPJE valuation estimate by end of 2010, here's my reasoning for why PPJE would easily be more than a penny by end of 2010.
- PPJE signed contracts in the past 4 months and can generate a revenue of $1.5MM
- signing the initial contracts is the difficult job. Now with more former employees onboard, with more expertise, and with credibility based on the initial signed contracts, I am expecting PPJE to sign many more contracts during the next 9 months. Taking a conservative estimate, if they go with the same pace, and continue signing $1.5MM worth contracts every 4 months, by the end of 2010, PPJE might sign contracts that are a total worth of $5MM.
- Remember, these are recurring contracts, and there is a good chance they would be renewed every year, unless PPJE screws up something. So money from all these contracts is a recurring yearly revenue for PPJE.
- PPJE is in the process of collecting $4.5MM from its former client.
- By end of year, PPJE will approximately have $10MM.
- revenue($10MM)/OS(4700MM) = 10MM/4700MM = 0.0021
- Applying a P/E factor of 20, we get the PPS to be 20*0.0021 = 0.04 which is 4 cents. Remember, health care services market has a higher P/E factor. P/E factor of 20 is very conservative for healthcare services industry.
- Even if we go by a very very conservative estimate, and assume PPJE can make only 1/4th of the above revenue, we would still be higher than a penny by end of 2010.
- Also remember that PPJE is currently on the REG SHO list, and even though it's temporary, it will increase the PPS in the short term to higher levels. http://www.nasdaqtrader.com/Trader.a...egSHOThreshold

PPJE is both a short term play, as well as a long term play. As I said in one my earlier posts, PPJE is a gold mine. It's a sleeper, and it's only going to go up. Mark this post.

This is all my personal opinion based on my DD on PPJE. Please do your own DD before investing. I believe PPJE is going to be higher than a penny by end of 2010.