MedClean Technologies, Inc, (MCLN.OB) formerly Aduromed Industries, Inc, is in the business of providing solutions for managing medical waste on site.
According to several press releases in March 2010, the company announced a partnership with Salesconx to deploy a 15 person national medical technology sales force to launch their new MC4100/MC4200 product line and a co-marketing agreement with Green Umbrella Solutions, a premier provider of services and technology for the destruction of Hippa documents. Both of these strategic alignments, according to Dave Laky, President and CEO, MedClean Technologies, Inc, lay the ground work for them to reach their objective of 100% compounded annual growth over the next five years.
The market for medical waste treatment is delineated by customer size: Large Quantity Generators (“LQGs”), those who generate large volumes of medical waste (in excess of 100,000 pounds annually), and Small Quantity Generators (“SQGs”), (those who generate less than 100,000 pounds annually).
According the MCLN, they traditionally served LQG’s, but the MC4100/MC4200 would enable them to expand their market to SQG’s at a savings compared to the traditional medical waste hauling alternatives utilized today. In MCLN’s March 26, 2010 S-1A filing with the SEC, it was reported that there are 476,199 SQG’s of which 200,000 are suited for MedClean Systems (“appliance” or alternative).
The company disclosed in their March 4, 2010 PR Newswire an increase of 21.4% in Revenue and Gross Margin improved 170% driving improved operating results; during the second six months of 2009, they reduced their cash used in operations to an average of $30,000 per month from $288,000 the first six months of 2009. While some of the reduction was attributed non staff reduction and the outsourcing of certain business functions, they appear to be positioning themselves for growth to in the $4 billion annual US market for medical waste disposal and confidential document distribution.
In December 2009, Goldman Small Cap Research initiated coverage on Med Clean and estimated at near term target of $0.14 and early 2010 price target of $0.40. It is April 5, 2010 and the price is still hovering around $0.02, so I’m not sure if it will reach Goldman’s $0.40 estimate in 2010, but I do think the stock has long term potential for patient investors.
All in all, I believe MCLN has significant opportunity for their new products given they continue reducing or maintaining cost reductions and continuously refine their strategic marketing efforts and alignments. The stock price should also move up as the Federal Government mandates stricter controls involving medical waste.
Since MCLN is a penny stock, it is a risky investment and the price of the stock is subject to rapid fire up/down fluctuations. So it is important to do your own due diligence before investing your money in this or any other stock.
Disclosure: LA Long MCLN
Tuesday, April 6, 2010
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Thanks for the info. This company seems to be flying under Walstreet's radar. I think they will do well long term as well. Dave seems to be lining things up for take off.
ReplyDeleteRandy
Good info and I appreciate your research on this company. Keep us posted on any new leads you get. Thanks,
ReplyDeleteRSA
Thank you for providing a balanced perspective. If it remains at two cents MUCH longer I'll have start practicing limbo. Good thing's u can't loose too much at these kinda levels.
ReplyDeleteI love this stock and consider it as a child who is still too young to walk, but that it's only a matter of time before its able to stand on its own two feet. I just hope it rises so abruptly that the would be pumpers and dumpers are left out of the equation some what.