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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 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
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 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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