Stock
Opportunity Undervalued
Alerting Investors to Overlooked and Undervalued Stocks
FEATURED COMPANY
Healthcare Industry Highlight
Shadow's
Bend Development, Inc. (OTCBB: SHBD)
Target
Price:
$2.25
Shares Outstanding (est.): 40M
Float: 4.5M (est.)
52 week High.....$1.66
Current Price..... $.28
Medicare
Coverage Now Authorized For the Treatment of Alzheimer's Disease---NY
Times
In
the trillion dollar healthcare industry, one of the most overlooked
and undervalued sectors is alzheimer's disease and the $100 billion
a year spent on its treatment---overlooked for a long time that is
until Nov. 5, 1994 when President
Ronald Reagan announced to the American public and to the world
that he was one of the millions of people afflicted with this degenerative
disease. The president's disclosure more than anything else has brought
an awareness to this terrible affliction, and has set the American
government into action. Such action has led to an unprecedented change
in policy---As of March 30, 20002, Medicare coverage has now been
authorized for the treatment of Alzheimer's disease---CLICK
HERE to read NY Times article.
So
what does this mean for victim's of Alzheimer's, the Alzheimer's sector,
and SHBD?
What this means is that millions of victims
of Alzheimer's disease now have access to funds they did not have
before, and that this sector of the healthcare industry is about to
explode. What this also means is that billions of dollars of the multi-billion
dollar Medicare budget are about to be channeled to the Alzheimer's
disease sector. Moreover, what this means for Shadow's Bend Development
(OTCBB: SHBD), a provider of specialized care facilities to meet those
afflicted with Alzheimer's, is the opportunity to care for more victims
of Alzheimer's disease than ever before. With over 4 million Americans
currently afflicted with this disease, and people living longer than
ever--(the average lifespan is now 75 years and climbing, and there
are more and more elderly individuals than ever with the aging population
of the baby boom generation)--the need for such facilities as Shadow's
Bend will not only be growing exponentially, so will the funding.
The
Shadow's Bend Vision
Research has shown a demand for well
over 200 of the specialty care units like Shadow's Bend nationwide.
In the initial phase of development, Shadow's Bend plans to construct
and acquire a minimum of ten such facilities---this would be 5% of
the total national market in a $100 billion dollar a year industry---and
still growing. And the Shadow's Bend plan has already been put into
motion, acquiring two other specialty care facilities in just the
past 6 weeks
as
well as the acquisition of SAQ Associates, Inc., an impressive marketing
framework representing over thirty thousand healthcare facilities
nationally.
Business
Wire---SHBD Announces Acquisition of Holly Hills - May 03, 2002 -
CLICK
HERE
Business
Wire--SHBD
Announces Acquisition of Three Oaks Corporation - May 01, 2002 - CLICK
HERE
Business
Wire-- SHBD
Announces Acquisition of SAQ Associates - June 14, 2002 - CLICK
HERE
With
Shadow's Bend's recent acquisitions, a conservative estimate of revenues
and profits in year three will be $15 million and $2.7 million respectively.
Unlimited Growth & Profitibility
Nationwide, the total cost for the care
and treatment of the victims of Alzheimer's disease has reached over
$100 billion annually,
and the
aging of the population is expected to result in a tripling of long-term
care expenditures in the next 40 years from $115 billion to $346 billion
annually. In 2000, there were an estimated 4
million people 85+ in the United States, and this figure is expected
to increase to 18 million in the next 50 years. This means that there
could be an increase from 1.4 million to 6.3 million people over the
age of 85 with severe or moderate memory impairment.
A
typical Alzheimer resident will spend seven years in a care facility
before having to be discharged for medical needs. That equates out
to an average $297,192.00 of revenue per person per facility based
on a $3,538.00 per month charge. Shadow Bend's initial goal of ten
facilities will produce a revenue stream of over $30 million per year
in residential care alone, with net proceeds of $4.8 million (EBITDA).
36 Bed Alzheimer Facility Statistics:
Specially designed facilities cost +/-
$3.1 million
Average bed rate per unit is $3,538.00
Revenues based upon 97% occupancy or $1,511,711
Net profit potential $413,908 or 27.38%
Investment Conclusion
SHBD
currently has a market cap of 11.5 million, and the company plans
to earn .04 cents a share EBITDA (earnings before intrest taxes depreciation,
& amoritization) - so we would expect the stock to be trading
around $1.25 for 2002 - based on a 30 P/E ratio. Based on a current
market value of $0.30 per share, this would be an increase of more
than 300%. Even more exciting is that the company plans to earn 7.5
cents for 2003, alowing the stock to trade at $2.25 based on a P/E
of 30. So you can see why we are so excited about this stock.
ACA, Inc. is an independent
newsletter and is not affiliated with Shadow's Bend Development, Inc.
ACA publishes reports providing information
on selected companies that ACA believes has investment potential.
Subscriptions are $290.00 per year to receive ACA reports. ACA is
not a registered investment advisor or broker-dealer. This report
is provided as an information service only, and the statements and
opinions in this report should not be construed as an offer or solicitation
to buy or sell any security. ACA accepts no liability for any loss
arising from an investor's reliance on or use of this report. An investment
in SHBD is considered to be highly speculative and should not be considered
unless a person can afford a complete loss of investment. ACA has
been hired by a non-affiliated, third party consultant, and has received
seven hundred twenty five thousand shares of common stock for the
promotion of SHBD. ACA has paid twelve thousand dollars for the creation,
publication and circulation of this report. ACA intends to sell a
portion of the SHBD stock at or about the time of publication of this
report ACA may buy or sell shares of SHBD stock in the open market
without notice. This report contains forward-looking statements, which
involve risks, and uncertainties that may cause actual results to
differ materially from those set forth in the forward-looking statements.
For further details concerning these risks and uncertainties, see
the SEC filings of SHBD including the company's most recent annual
and quarterly reports. Examples of past performance picks are not
indicative of future performance, nor do they imply that SHBD will
do the same. The views and opinions expressed herein are entirely
those of ACA and do not necessarily reflect those of the management.
SHBD may need futher capital infusion to execute their complete roll
up strategy. Copyright ã 2002 by ACA. All rights reserved
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