CardioComm Solutions Inc (EKG)

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EKG.V Target Price: $14.11, Upside Potential: 2,419%



Heart Health Companies Remain In Play After Continued Market Success
EKG.V CURRENT PRICE: $0.56
EKG.V TARGET PRICE: $14.11
UPSIDE POTENTIAL: 2,419%


February 12, 2012 - Toronto, Ontario - CardioComm Solutions, Inc. (TSXV:EKG), a global medical provider of ECG acquisition and management software solutions, rose 45% on Friday after the company announced that they entered into a five-year renewable software development and license agreement for ECG management services with Royal Philips Electronics. This serves as confirmation that EKG is headed in the right direction with respect to the $14.11 price target recommendation produced by TSX News three weeks ago. Since inception, EKG has gained 331% for TSX News followers.

The Medipattern Corporation (TSXV: MKI), a pioneer in the development of medical imaging software solutions that help medical practitioners to better understand lesions and critical anatomy, has continued to make progress in the commercial rollout of their groundbreaking vascular disease intervention product Visualize:Vascular™. As confirmed by the CEO, Medipattern's technology has been implemented and used by 19 different health care facilities in the United States.

With 2.6M stock options, MKI has only 60M fully diluted shares outstanding. Given EKG's $1,360M market cap valuation based on their hand-held heart rhythm monitor, it is reasonable to expect that MKI would achieve at least half of the market cap with their medical imaging software solution Visualize:Vascular™ which allows physicians to assess vascular disease in a patient earlier than ever before. A $680M market cap for MKI would result in a fully diluted stock price of $11.33.

MKI remains a strong candidate for a huge short term price spike given the way the TSX Venture health care sector has performed this year. Known short term catalysts include a commercial update on Visualize:Vascular™ and the financial results due by the end of the month.

However, additional upside news events exist for the company. MedX Health Corp., (TSXV: MDX), shot up 467% on Thursday after the company received approval from Health Canada for their Skin Cancer Imaging System, MoleMate™. Given that MoleMate™ was already approved by the FDA before the Health Canada approval, MKI would also be a strong candidate for a similar price spike if it were to receive Health Canada approval, a reasonable expectation since the FDA already approved Visualize:Vascular™.

Despite the positive company and industry events, MKI has dropped from the original buy recommendation at 17 cents as impatient short term players sold MKI to chase other sector stocks like MDX after their news releases have already shot up their stock prices to short term highs. Given the continued strong success of TSX News' EKG buy recommendation and the extremely undervalued market cap of $8.3M for MKI, investors would be prudent to take a look at MKI to assess if the stock is appropriate for their portfolio.


http://tsxnews.blogspot.com/2012/02/heart-health-companies-remain-in-play.html