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The Valuation Of A Lifetime: MMED

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To OTC Journal Members: 
 

The Sperry Univac

This is the Sperry Univac.

This is considered the first commercial computer, and it came out in 1951. It took up an entire room, and had computing power probably equivalent to the calculator on your desk.

I'll never forget a TV demonstration when I was just a kid. The operator asked it some question, and the machine went through a whole bunch of paper cards, and in the end spit one out with the answer. It took some time.

Obviously, we've come a long ways from this giant series of machines in 1951 (two years before I was born), to today's computing power.

Sperry Univac eventually became Unisys, one of the 12 computer manufacturers in the 60's, all of whom were dwarfed by the achievements of IBM.

Today, we still have gigantic rooms filled with computers known by various names- Server Farms, Cloud Computing, Data Centers, Enterprise Systems. At work, you might have a terminal on your desk, but somewhere along the line there is a giant room full of computers that helps your terminal work. This also applies to your cell phones, Television, and video games, and just about everything electronic.

These gigantic data centers use 10 to 100 times the energy with electricity and cooling. There's a whole energy business just for the proper management of the energy use for data centers. Today's idea has just recently grown from zero to over $50 million in annual revenues in this sector, and absolutely- and I mean absolutely nobody knows about or is following this stock- until now. You are the first investors to actually pay any attention to this situation, which gives you the "first mover" advantage.

Midas Medici (OTC BB: MMED)

On the "What They Do" side I'm really going to keep this short and sweet. MMED is a holding company that has 3 separate companies under its umbrella. Two of the acquisitions have been completed this one- one today after the market closed.

In short, despite there only being about 7.5 million share I&O, MMED, with the acquisitions of Consesus, WeatherWise, and the original subsidiary UtilliPoint, is now a global IT solutions company with over 700 customers and over $50 million in annual revenues. The cap structure of 7.5 million shares is almost silly for a company with this kind of revenue number.

Here's an abbreviated customer list:

  • Pepsi
  • AT&T
  • Oracle
  • redhat
  • Progress Energy

Since there's over 700 of them, this list could go on for a while. But, I won't bore you with that stuff. The far more interesting question? What can this stock do? Answer- I have no idea, but I suspect it's going to be a little crazy. 

Post Close and Coming Out Party

For all intents and purposes, MMED has never really traded. It's almost more like an IPO. It was originally structured as a holding company for IT solutions corps, this year it has delivered a complete transformation.

There was a $1.5 million financing done by a mid tier brokerage firm for the MMED- are you ready for this- priced at $5. The merger with Consensus brought in some shareholders from a private company that own their shares in the $3.50 to $5 range.

The most current audited financials show only $1 million in revenues. However, the Consensus acquisition took place earlier this year, and the acquisition of WeatherWise took place today. You have to really dig into the SEC filings to understand this company has 700 customers and over $50 million in trailing revenues.

For those who want to educate themselves, go to this SEC filing, read it, and you'll get an understanding of the scope of the company's combined:

http://www.sec.gov/Archives/edgar/data/1392448/000101376211001158/form8k.htm

With today's coverage and others coming behind me, MMED is now officially come "Out of the Closet", and I don't mean that in the controversial way you might be thinking. The company is now really big for their piddly $15 million market value, and we're lucky enough to have been chosen to be first to realize the enormity of what's happened here.
 

The Scary Part- Trading the Stock

MMED last traded exactly 100 shares at $2.01 yesterday. The financing was done at $5. The Consensus shareholders are in somewhere from $3.50 t0 $5.

Today, after the market closed, MMED announced it acquired WeatherWise Holdings- a complimentary software company. It's rather obvious this company is on a roll this year.

However, check out the chart.

This chart has no technical value. The only thing one can learn from this chart is that this stock has never really traded. The chart actually goes back to May of 2010, and the highest volume day on the chart is 2000 shares.

So, if you could buy this stock for yesterday's print of $2, I would advise you to pick up every share you can afford.

This situation calls from some common sense. For all I know the first 10,000 shares could take this stock to $15, which would of course be ridiculous.

I believe this stock is an absolute must own up to about $3.50, but I'm just guessing where it might go. When it opens tomorrow and has a whole new giant audience, I'm hoping there's some supply you can get.

As with the last idea- VRNG- I cautioned waiting a day or two on a big move up, and if you traded it with some common sense, you ended up 44% in ten days. If jumped it at the top on the first day, you were only up 10%. That's a big difference.

I'm planning some follow up editions to give you a better idea of what this company does. This one is very exciting from a valuation perspective. Next week we'll also have some perspective on how the stock has traded.

In the meantime, this is definitely one to own. Just use some common sense tomorrow. If the price is too crazy, just wait a day. Use a limit order- under the new rule, the size on all orders is now displayed. I would file limit orders right up to $3.50 without too much fear. Then, hang on. This one could get pretty wild.

Here's today's news release:

Midas Medici Closes Acquisition of WeatherWise Holdings, Inc.
Acquisition to Provide Sophisticated Analytical Software Tools to Support Midas' Green IT and Smart Grid Mission


Midas to Host a Conference Call to Discuss its Acquisition of WeatherWise on Friday, May 13, 2011 at 10:00am EDT

Press Release Source: Midas Medici Group Holdings, Inc. On Wednesday May 11, 2011, 4:01 pm

NEW YORK, May 11, 2011 /PRNewswire/ -- Midas Medici Group Holdings, Inc. ("Midas") (OTCBB:MMED.ob - News), an innovative green IT company in the fields of virtualization, cloud computing and data management, as well as Smart Grid solutions, today announced that it has closed its acquisition of WeatherWise Holdings, Inc. ("WeatherWise"), an analytical and data modeling software company. Midas will host a conference call to discuss the acquisition on Friday, May 13, 2011 at 10:00am EDT.

First announced in April, the acquisition of WeatherWise was completed in an all-stock transaction. With its proprietary technology, WeatherWise specializes in providing customized consumer energy products including SetYourBill(SM) payment systems, WeatherProofBill® fixed bill and capped bill products, EnerCheck® energy efficiency and carbon footprint reporting, and billing support services. The acquisition of WeatherWise and its sophisticated software and analytical capabilities will allow Midas to more effectively increase participation in the digitization of the electrical grid and offerings of energy efficient IT infrastructure for data centers while enhancing the company's future growth potential. As part of the merger, WeatherWise will be rebranded "UtiliPoint Analytics," allowing Midas to further leverage its Consonus and UtiliPoint brands as it sets out to monetize WeatherWise's intellectual property and sophisticated technologies.

"On behalf of our management and Board of Directors, I am pleased to announce the closing of Midas' acquisition of WeatherWise," stated Nana Baffour, CEO and Co-Founder of Midas. "Following our recent merger with Consonus in March, this acquisition will set the stage for additional synergies between our Consonus and UtiliPoint brands as we look to capitalize on energy efficiency opportunities that span our core disciplines in the energy sector and data center IT infrastructure. This new milestone represents a further step towards our goal of transforming Midas into an organization with a focus on both green IT and Smart Grid solutions throughout the United States, and around the world."

Founded in 1996 in Pittsburgh, Pennsylvania, the majority of WeatherWise's current revenues come from its WeatherProofBill® Program, where consumers pay fixed annual bills for heating and cooling regardless of the weather. This service is made possible by WeatherWise's highly sophisticated and proprietary analytical software tools which have much broader applications. Over the years WeatherWise has established an intellectual property portfolio that protects its key product offerings, including a patent for energy efficiency monitoring, and multiple patents pending for rates calculation software.

"The operational benefits of the acquisition are significant and include specialized technical resources, a strong management team and a robust intellectual property portfolio," said Johnson Kachidza, President, CFO and Co-Founder of Midas. "Through this most recent transaction, Midas is meeting its goal of capitalizing on opportunities at the intersection of energy and technology as we continue to expand through both organic growth and acquisitions."

As a result of the acquisition, Midas now has access to WeatherWise's team of highly seasoned engineers, programmers and energy professionals, who have over 70 years of combined experience in analytical modeling across various energy consumer applications. In addition, Midas has access to the proprietary software developed at WeatherWise, which uses sophisticated heuristic algorithms to model the energy consumption of commercial and residential customers. The accuracy of its models surpasses the most advanced modeling methods currently available to energy companies from academic and research institutions. This accuracy is especially important in the reduction of risks and costs and increased clarity in observation of consumer behavior changes.

Conference Call:

Subsequent to today's release, a conference call to discuss Midas' acquisition of WeatherWise is scheduled for Friday, May 13, 2011 at 10:00am EDT.

The teleconference can be accessed by dialing 877-407-8033 when calling within the United States or 201-689-8033 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. There will be a playback available until May 27, 2011. To listen to the playback dial 877-660-6853 when calling within the United States or 201- 678-7415 when calling internationally and use account number: 286 in conjunction with replay ID number: 372747.

The conference call will be simultaneously webcast and available at: http://www.trilogy-capital.com/autoir/mmed_autoir.html.

About Midas Medici Group Holdings, Inc.

Midas Medici Group Holdings, Inc. (OTCBB:MMED.ob - News) is a green IT company that supplies mid-sized and select enterprises and institutions with leading-edge IT solutions in the fields of virtualization, cloud computing and data management, as well as working with utilities and other institutions to transform the electric grid through digital technologies. Across its Consonus and UtiliPoint brands, Midas works with its customers by optimizing IT and data center investments, cutting energy usage and preventing data loss, all while maximizing productivity. Through a management team with decades of experience, Midas is positioning itself to take advantage of the high-growth IT industry through its unique specialized services at the intersection of energy and technology.

For more information, please visit Midas Medici on the web at: www.midasmedici.com.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the Company's business and operations; business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Company Contact:

Johnson Kachidza
Chief Financial Officer
212-792-0920

Investor Contact:

Trilogy Capital Partners
Darren Minton, President
Toll-free: 800-592-6067
info@trilogy-capital.com

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