Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
Despite continuing evidence of a
nasty economic downturn, there is no recession at MedGrup (OTC BB: CODX),
one of our featured companies. Yesterday's news which was released after
the closing bell is outstanding and helps reinforce our belief this stock
will perform beautifully throughout the remainder of the year. Before we
cover the news, here's some brief comments.
As we pointed out in our June
9th weekend edition, the market was poised to move- more likely down
than up with the mine field of "Pre Earnings Announcements" which were
expected to come out prior to the end of June.
Every evening bad news plagues the
market- McDonald's, Nortel, JDS Uniphase, the GE/Honeywell deal and many
others have dampened any bullish enthusiasm. These pre announcements come
as no surprise to market watchers. In fact- the market is holding up very
well in the face of negative corporate news.
Technicians are looking for the 1950
range on the NASDAQ as a low risk entry point for large cap names.
Bargain hunters might want to look at Oracle (NASDAQ: ORCL)- this
stock has held up well in a declining market, suggesting it should go higher
on the next upsurge.
The lack of conviction to the downside
in the face of poor corporate performance supports a bounce when we get
into July. Companies that have pre warned have already been clobbered-
Companies that have not pre warned will be releasing earnings in the first
part of July, and they have the potential to trade up. This period will
coincide with the next FED meeting which should lead to another
interest rate cut.
In the meantime, Thursday evening's
Trading Alert on StockGroup (OTC BB: SWEB) has worked out very well,
up 23% from the close Thursday evening. We were fortunate to get
the jump on the Sony news, and don't be surprised to see a little
more upside next week. Keep your stop loss tight and avoid any significant
downside in the event the stock turns back down.
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Special
Announcement |
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We are working on a potential Trading
Alert. The company is on track to do $120 million in revenues
this year (up from $60 million last year) and earn $.22 per share
(lost money last year). The stock is trading at $1.50- We may have
this one for you on Tuesday just after the close.
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News On MedGrup
(OTC BB: CODX) Just After the Close |
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Excuse our vulgar language, but
we can't help but point out MedGrup (OTC BB: CODX) is simply kicking
butt. As we pointed out in our June
9th edition "March quarter numbers were lackluster as the company
was investing a lot of capital on infrastructure to handle major new contracts".
As revealed in this weekend's press
release, MedGrup's infrastructure investment is paying off rapidly.
May
was the biggest month in the company's history, and supports our contention
the company will achieve $8 million in sales this year with the same consistent
strong profit margins.
In May the company achieved $600,000
in revenues, up from $318,000 in May of 2000. Moreover, $600,000 in revenues
puts the company on pace to achieve $7.2 million in annual sales.
They are still growing, and we expect future sales numbers to be even greater.
The chart demonstrates the stock
is camped on its support line which suggests it could easily go higher
from here. This stock has very little following aside from the OTC Journal.
This gives our members the competitive information edge. You will be in
position to enjoy a profitable investment when Wall Street finds
out about this company. This one is also a potential take-over candidate
as their market niche is very unique.
We continue to like this stock for
$4
in the short term, and $6 in the longer term. One thing is certain-
there
will be no Pre-Earnings Warning Announcement coming out of MedGrup.
Here is the complete text of the
news release for your review:
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MedGrup Corporation announces
record month. Continues explosive growth. Promotes Kemmel Dunham
to Vice President.
Monument, Colorado, June 15, 2001,…….
MedGrup Corporation (OTC Bulletin Board: CODX - news) today announced another
record volume month. During May 2001 MedGrup personnel coded
in excess of 80,000 medical charts as compared to 47,000 charts coded during
May of 2000, resulting in an increase in excess of 85% from the prior year.
This increase in volume translated to revenue in excess of $600,000 as
compared to revenue of $318,000 in May 2000, an increase of approximately
89% from the prior year. As a result of this exponential growth MedGrup
has increased the number of coding staff from 36 in May 2000 to 68 in May
2001 and continues to enhance the efficiency of operations to ensure the
effective use of all its current resources.
As part of MedGrup’s continuing efforts
to improve quality, customer satisfaction, and operations, Mr. Kemmel Dunham
has been offered and accepted the position of Vice President, Support Services.
Mr. Dunham is currently planning to relocate from Amarillo, TX to the corporate
offices in Monument, Colorado. Kemmel’s responsibilities include
Information Technology, Product Development, Consulting Services, and Business
Office Services.
Mr. Dunham brings with him nearly
fourteen years of Healthcare experience, including ten years in healthcare
management. Before joining MedGrup one year ago Kemmel was Director
of Business Services for Covenant Medical Center Lubbock, TX. We
are very excited that Mr. Dunham will be joining our senior management
team in Colorado. Kemmel’s invaluable healthcare experience and gentle
“can do” attitude will prove invaluable to MedGrup as we continue to grow.
Effective June 1, 2001, Mr. Terry
Holmes was released from his position as President of MedGrup. William
Cronin, MedGrup’s Chairman and CEO, has assumed the position of President.
MedGrup is a pioneer in the highly
specialized field of outsourced medical chart coding. The Company employs
highly skilled technicians, known as coders, whose job is to interpret
thousands of medical diagnoses and procedures and to convert them into
a series of numerical codes. These codes are required for Medicare/Medicaid
and health insurance reimbursement to service providers. The codes
must be used for every outpatient, inpatient, and emergency room visit
at all U S hospitals, clinics, and physician’s offices. An estimated
1.1 billion such visits were recorded in the year 2000.
The foregoing may contain statements
that plan for or anticipate the future. Forward-looking statements
include statements about the future of the medical services industry, statements
about our future business plans and strategies, statements about our financial
condition and results of operation and most other statements that are not
historical in nature. Forward-looking statements are generally identified
by the words “anticipate”, “plan”, “believe”, “expect”, “estimate”, “grow”,
and the like. Because forward-looking statements involve future risks
and uncertainties, there are factors that could cause actual results to
differ materially from those expressed or implied. These factors
include general economic and business conditions affecting the medical
services industry, financial strength of the public and private healthcare
system, government regulation or legislation, the costs and pricing of
our services and the level of demand for our services. Reported results
should not be considered an indication of future performance. Investors
should not rely on these forward-looking statements.
For further information contact:
MedGrup Corporation, Investor Relations, (719) 481-1500.
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