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American Company Spotlight

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Biomedical Technology Solutions Holdings Inc. Website:
Click Here |
Information As Of
May 16,
2011 |
| Exchange:
OTCBB |
Market Cap:
3.5
Million |
| Outstanding Shares:
32.1
Million |
52 Low / High:
$0.10 / $0.50 |
|
Price May
16, 2011:
$0.11 |
BMTL Recent Stock Quote and News:
Click Here |
"In
2008, the United States alone generated over five pounds of
biomedical waste per person annually, representing more than
1.5 billion pounds being generate each year which must be
disposed of properly per government regulations. The global
market is estimated at 3 times the U.S. market."
Overview
BioMedical Technology Solutions Holdings, Inc., located in Englewood,
Colorado, sells the Demolizer® II through its wholly owned subsidiary BioMedical
Technology Solutions, Inc. BMTS' patented Demolizer® Technology converts
infectious biomedical waste into non-infectious material. BMTS' products provide
biomedical waste treatment solutions for the over 1,000,000 low to medium volume
medical waste generators in the US and a global market five times larger than
the US.
Investment Highlights
- Resilient & Lucrative Industry. Despite
recessions or market conditions, biomedical waste management
maintains a constant growth rate that does not succumb to
outside influences like many other industries. Biomedical
waste management is a constantly growing industry with
conservative estimates predicting it will top $3 billion
annually within the next four years.
- Massive Market Potential. In the United States
alone, there are more than one million small to medium
volume biomedical waste generators that are targets for
sales including medical centers, veterinary clinics,
assisted-living facilities and dentists, to name a few.
- Patented & Unique. The Demolizer® II is the only
patented and portable technology that can dispose of both
sharps and typical red bag waste onsite where it can be
disposed of as common trash.
- Increasing Revenues & Profit Margin. For the
quarter ended March 31, 2011, BioMedical Technology
Solutions revenues were $183,340 in 2011, up from $162,704
in 2010. The increase (13%) was due to changes in
management, refocused efforts in product marketing and
supporting distributors. The cost of revenue for 2011 was
$101,915 up from $75,813 from the prior year. The increase
(34%) is attributed to increased revenue.
- Secure & Notable Clients. Users of the Demolizer®
II include the United States Air Force, the U.S. Department
of Veteran Affairs, US HealthWorks, Hospital Corporation of
America and Coors Field.
- Distribution Equals Growth. BioMedical Technology
Solutions has distribution agreements with some of the
largest and reputable firms in the medical industry
including Henry Schein, PSS, Patterson Dental, and
GroupSource.
- Tight Share Structure. BMTL has approximately 32
million issued and outstanding shares and a tiny float of
approximately seven million.
Profile
With a constant shift in the world’s trend to protect our
planet, biomedical waste is regularly in the news due to its
dangerous nature to harm both people and the environment if it
is not properly collected and destroyed. The biomedical waste
industry is one that slips past many investors as, quite
simply, it is generally looked at as garbage disposal. Taking
that for what it is, it is important to realize that it is a
multi-billion dollar industry and as regular and dependable
from an investment standpoint as any other industry in the
world. Face it, people are always going to need medical
attention and that generates waste, which is federally
regulated and mandates proper disposal. It is unavoidable.
In the United States alone, biomedical waste is on the rise.
In 2008, over five pounds of medical waste was generated for
each person in the United States. This equates to 1.5 billion
pounds that must be accounted for and properly disposed
according to government regulations. Twenty years ago, the
industry was only valued at approximately $750 million.
Growing at approximately a 25% rate, the industry surged
through $1 billion in 1995 and is conservatively estimated
that it will reach $3.2 billion annually by the year 2015.
Our aging population, which requires more care, coupled with
several other factors, including a concerted effort to ensure
that the hazardous waste does not damage a person or our
environment are driving forces in the industry’s growth. The
federal government requires "cradle-to-grave" tracking of
medical waste, including sharps. In simple terms, this means
that a log must be kept from the moment that biohazardous
waste is generated until the time it reaches its final
destination at a waste facility and is properly destroyed.
Many states also require that a “destruction certificate” is
also issued documenting the log and destruction of the
biomedical waste.
Given the gravity of the waste and the contamination component
of it, haulers (companies that pick-up the waste from a
facility and take it to a different location for destruction)
charge exorbitant amounts of money to provide the service.
Stericycle, Inc., the monster of the industry with a $7
billion dollar market cap, has proven just how profitable the
industry can be. Waste Management, Inc., a global leader in
garbage removal, has recently thrown its hat into the
biomedical waste disposal ring in an effort to penetrate the
industry that is resistant to recessions and volatility.
The fact is that biomedical waste is generated everywhere you
look. Hospitals, medical centers, dentists, sports facilities,
veterinary clinics, assisted living facilities, airports,
equine facilities, pharmacies that provide flu shots, etc. If
a needle is used or blood flows, it’s a biohazard and must be
disposed of as such. The diabetic community alone generates
over 1 billion used needles annually.
Small to medium volume generators of waste are the main
targets for potential clients due to sheer numbers and profit
margins. Whereas there are only approximately 17,000 hospitals
in the U.S. (considered large volume generators), there are
over one million small to medium volume generators of waste.
To demonstrate the value of these smaller customers, in 1996,
approximately 75% of Stericycle’s business was generated from
large volume generators. In 2006, the roles had reversed, as
now 75% of their business is derived through small to medium
volume generators.
Most importantly, these smaller volume generators have been
subject to the effects of the recession just like the rest of
the world. As a result, cost cutting measures are being
exercised at a pace never seen before. Patient loads are still
strong and must be maintained or even increased while
efficiencies are maximized in order to keep operating margins
as highs as possible. With a typical, four-doctor general
practice averaging hauling costs of biomedical waste in excess
of $4,000 per year; it is certainly a source of topic for cost
reduction measures.
Englewood, Colorado-based BioMedical Technology Solutions
Holdings, Inc. (OTCBB:BMTL) operates through its wholly-owned
subsidiary, BioMedical Technology Solutions, Inc. (“BMTS”) and
is emerging as an industry leader in biomedical waste
management because it provides a solution that encompasses all
the issues with biomedical waste in one product. The Company
manufactures and markets the Demolizer® II, the world’s only
portable and patented machine that processes both sharps and
typical “red bag” waste onsite so it can be disposed of as
common trash. The Demolizer II addresses the issues of
expensive hauling services, eliminates “cradle-to-grave”
liabilities, and is the only “green” product of its kind;
addressing environmental concerns.
The Demolizer® II is a unit approximately the size of a
desktop copier that plugs into a standard wall outlet and,
with the push of two buttons, processes sharps and infectious
red bag waste so it is rendered 100% sterile and able to be
disposed of with any other regular trash generated by the
facility. In reality, once processed, it is the most sterile
item in the trash. In addition, the machine prints all
necessary documentation to maintain strict compliance with all
government mandates; eliminating all “cradle-to-grave”
responsibilities. The fact that it brings all of these
features to its users and comes at a cost that offers a
significant reduction to hauling services is leading to rising
popularity and sales. This was reflected in BMTL’s last
quarterly report which showed revenues were up by 107% as
compared to the year prior’s quarter. In addition to this
astounding revenue growth, the BMTS management slashed
expenses by 38% at the same time.
We have written in the past about how valuable government
contracts can be for any company. BioMedical Technology
Solutions has proven its value to the government through
contracts over the years with Demolizer® II units currently
being used by the U.S. Air Force and U.S. Department of
Veteran Affairs. Industry leaders, US HealthWorks and Hospital
Corporation of America are also corporations that are
realizing the benefits of the Demolizer® II and have placed
repeat orders. Even Coors Field, home of a professional
baseball team has one on site.
Echoing the value of the Demolizer® II units, Joseph Mallas,
Executive Vice President of Operation for U.S. HealthWorks,
had this to say after the three-month program was completed:
"Usage of the Demolizer® II has helped us lower the cost of
biomedical waste management by 70%, exceeding our initial
projected savings. We are looking forward to rolling this out
to more of our centers nationwide." Since that statement,
another round of units has been ordered and received by the
owner of medical facilities nationwide.
While the potential for Demolizer® II contracts within the
United States provides a billion-dollar possibility,
BioMedical Technology Solutions holds patents throughout the
world and has distribution agreements in place globally. A
recent patent was issued in Russia as biomedical waste
disposal there and throughout Europe is growing exponentially
and is a major topic of health concerns and legislative
discussions. With the Demolizer® II technology protected
throughout the world, BMTS is there to provide the solution as
more strict enforcement of proper biomedical waste management
is starting to happen.
BMTS leverages the expansiveness and recognition of its
distribution partner Henry Schein Medical, one of the largest
medical device distributors in the United States to perpetuate
repeat sales and generate new customers. Additionally, a new
distribution agreement was signed with GroupSource to end 2010
with a bang. With an extensive reach to more than 130,000
physicians, GroupSource is focused on group purchasing to
negotiate contracts to reduce hard dollar costs. The
partnerships with Henry Schein, PSS, Patterson Dental and this
new agreement with GroupSource in combination with recurring
orders through additional customers has BioMedical Technology
Solutions well-positioned to expand its footprint within the
industry to a great extent in this New Year.
With only 32 million shares issued and outstanding and a tiny
float of around 7 million, BMTL also has a serious competitive
edge on its larger competitors as overall profits increase
bottom line numbers drastically with every unit sold. The
Company is run at an efficient level that produces a 50 to 60
percent gross margin presently with continued efforts ongoing
to cut overhead even more in the interest of the Company and
its shareholders.
Technically
speaking, the BMTL chart may be poised for a rise. The price
per share had one brief touch of a 52-week low at 10 cents
which resulted in a quick climb on that day to over 12
cents. Technical traders
will look for separation of key indicators which can often
mean a technical reversal is in the making and that appears
to be happening even though the value of a share has still
not touched that same bottom level.
The commonly used Moving Average Convergence Divergence (MACD)
appears as if it could be turning to make a higher low. This
is the most common sign of positive divergence that
technical traders are in search of for a stock ready to make
a climb as the separation is wide from the signal line, yet
looks to be at the early stages of flattening. Volume based
indicators such as the Money Flow Index (MFI) are a
tell-tale sign as to the true volume of buying versus
selling in a stock and that shows that the buying pressure
today was much heavier than the selling pressure. The
much-used Full Stochastics is at levels that produced a
bounce from $0.19 to $0.24 the last time in February.
Moreover, the Relative Strength Index, which follows
momentum of a stock is still seeing its long-term components
still in the area of 50 which indicates indecision in
momentum. Much like so many other stocks that we have looked
at recently, BMTL appears to be held down technically by
very low volume selling which our experience tells us is not
substantial to the true value of the share price. Strong
resistance does not enter the picture until the area of 23
cents, representing a more than 100 percent gain from
today’s closing price, which will have technical traders
looking very closely at this undervalued play. With the 52
week low being at $0.10 a share, that will continue to be a
strong support level and stop losses just below that price
would be encouraged to protect against any possible further
drops in price. As always, the above interpretations are
merely AllPennyStocks.com's interpretations of the BMTL stock
chart, and investors are strongly encouraged to do their own
due diligence and consult with a financial advisor prior to
making any trades.
Even though the technical aspects of the
BMTL stock chart show promise, investors will be more excited
by the Company's recent fundamentals. The Company announced
after the bell on May 16th, 2011 their latest 10Q
filings. According to the 10Q, revenues were $183,340 in
2011, up from $162,704 in 2010. The increase (13%) was due
to changes in management, refocused efforts in product
marketing and supporting distributors. The Company's cost of
revenue for 2011 also rose and was pegged at $101,915 up
from $75,813 from the prior year. The increase (34%) is
attributed to increased revenue. The Company's cost of sales
as a percentage of revenue decreased to 45% of revenue for
the quarter ended March 31, 2011 down from 53% for 2010 due
to product revenue mix. Lastly, for the quarter ended March
31, 2011, the Company incurred a net loss of $81,196,
compared to a net loss of $413,434 for 2010, a decrease in
net loss of $332,238 or 80%. The decrease in net loss was
due to a change in management and implementation of major
cost cutting measures. This Company is definitely shaping up
quite well from a fundamental perspective, and with more
eyeballs watching BMTL, it may translate to plenty of more
liquidity for this quiet but very impressive Company.
It
is no secret that the world continues to migrate towards green
technologies and every company out there is looking for a way
to save money each month. Throw in the mix that biomedical
waste disposal is not only not going away; it is increasing
regularly in cost and visibility for proper disposal. There is
no other technology on the market that does what the
Demolizer® II does and as BioMedical Technology Solutions
continues to gather momentum through large-scale distribution
agreements and penetration of the global market, this Company
will not be flying under the radar of the investment community
for long. It is for this reason, as well as those mentioned
above, that we at AllPennyStocks have decided to turn our
spotlight on BioMedical Technology
Solutions Holdings, Inc. (OTCBB:BMTL) and encourage our
members to perform their due diligence on the Company and add
it to their watchlists.
Recent News and Press Releases
BIOMEDICAL TECHNOLOGY SOLUTIONS HOLDINGS INC Files SEC form
10-Q, Quarterly Report
EDGAR Online (Mon, May 16)
BioMedical Technology Solutions Receives Signed Letter of
Intent Valued in Excess of $2 Million From New International
Distributor Marketwire (Tue,
Jan 11)
BMTL Expands Reach to the Physician Market Through a New
Distribution Agreement With GroupSource Marketwire (Wed, Dec
15)
BioMedical Technology Solutions Strengthens International
Position With New Russian Patent for Demolizer(R) II
Technologies Marketwire (Tue, Nov 16)
BioMedical Technology Solutions, Inc. and Distribution
Partner, Henry Schein, Continue Nationwide Roll-Out of
Demolizer(R) II in US HealthWorks Locations Marketwire (Tue,
Oct 5)
Management
Jonathan Bricken - CEO
Gex Richardson, Esq. - President, Chairman of the
Board and Secretary Gex Richardson, ESQ, serves as
in-house counsel and is a senior investor in BioMedical
Technology Solutions, Inc. Mr. Richardson is also the Senior
Vice President /General Counsel of Glenn Wright Construction
& Development, Inc. which is a $200 Million Dollar a year
Real Estate Development Company in Fort Lauderdale, Florida.
Previously, Mr. Richardson was Of Counsel to Akerrman
Senterfitt, one of the largest law firms in Florida,
specializing in corporate transaction and real estate. Mr.
Richardson has been practicing law for 17 years since
graduating from the University of Florida with a BSBA in
finance and a Juris Doctor.
Tom Von Bank - National Director of Sales
Tom Von Bank, National Director of Sales, oversees all
revenue generating initiatives for the Company. He has
extensive experience with building and managing sales teams,
working with distributors, and applying a scalable process
to growing profitable revenue. Tom comes to BMTS with over
23 years' experience in medical sales, sales management and
sales distribution from a variety of medical organizations
ranging from Fortune 50 companies to pre-IPO top 100 Dunn
and Bradstreet start-up organizations, including BioMet,
VitaMed, US Medical and Lexicor Medical Technology. Tom had
designed nationally recognized sales and marketing programs.
Mr. Von Bank brings significant medical and sales
experiences to BMTS to support the full scale launch of the
Demolizer® and related technologies.
Chuck Chapman - Regional Sales Director
Contact
BioMedical Technology Solutions, Inc.
9800 Mount Pyramid Court, Suite 250
Englewood, Colorado 80112
Phone:
Toll Free:
866.525.BMTS (2687)
In the Denver, Colorado Metro Area :
303.653.0100
Fax:
303.653.0120
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect BioMedical Technology Solutions
Holdings, Inc. current
expectations about its future results, performance,
prospects and opportunities.
BioMedical Technology Solutions Holdings, Inc. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause BioMedical Technology
Solutions Holdings, Inc.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
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