By: Dylan Sikes - AllPennyStocks.com News

Tuesday, October 15, 2013

Television shows, such as Celebrity Rehab starring Dr. Drew Pinsky, have put a spotlight on the reality of alcohol addiction and how challenging it can be to overcome. However, some experts postulate that the drama and exposure of the limelight of shows can actually be more damaging than helpful. The takeaway should be that for every one of these alcohol or drug-addicted celebrities, there are hundreds of thousands of “ordinary people” that need help to overcome their addiction; and it’s just as difficult. The need for help has grown the alcohol rehabilitation business into a $22 billion industry. Fresh Start Private Management, Inc. (OTCQB:CEYY) is uniquely positioned to help these individuals while significantly growing corporate value for its stakeholders. Headquartered in Santa Ana, CA, Fresh Start Private Management, Inc. is an alcohol treatment and rehabilitation company that has developed a leading edge program for helping alcoholics cope with physical and mental components of their disease. The company utilizes a two-fold approach, first consisting of a subcutaneous implant formulation of Naltrexone, an FDA-approved opiate antagonist that is used to curb cravings for alcohol. Naltrexone is available in oral or injectable forms, but the implant virtually eliminates the threat of patient non-adherence to the care plan, a key in overall effectiveness. The implant slowly releases Naltrexone that can last for several months and up to a year in many people depending on individual metabolism and other factors.

Fresh Start Private Management, Inc. has worldwide rights to this particular implant formula with exception to Australia and New Zealand.

With the physical cravings tamed, the second portion of the Fresh Start Private program involves custom-tailored, one-on-one coaching to help the patient transition to an alcohol-free life and address any underlying concerns that may have been encouraging the person to drink in the first place.

The comprehensive Fresh Start Private program has demonstrated a stellar 85-percent success rate with people that complete the program as reported by clinics using the program. Fresh Start Private distributes the program to clinics, with the rate of expansion starting to gain steam as insurance plans adapt policy to pay for all or a portion of the treatment. The first clinic in California that has been using the Fresh Start Private program has finally received approval from a major insurance carrier that happens to cover about 90 percent of the patients that enter the clinic. This is not only important going forward, but also means that Fresh Start Private should be seeing a cash infusion from the payments that have been bottlenecked while waiting for approval.

Clinics in Arizona and Nebraska have also licensed rights to the program. In the future, Fresh Start Private says it intends to open corporate-owned clinics in select markets, if appropriate.

The company reported this month that a second clinic in California offering the Fresh Start Private program is planned to be opened in mid-November. The clinic is located across the street from the John Muir Medical Center in Walnut Creek in the San Francisco Bay area. As with other licensees, Fresh Start Private will collect royalties based upon sales of the program

At $887,160, revenue more than doubled in the first half of 2013 compared to 2012 for Fresh Start. Now, with insurance coverage taking shape and more licensees coming on board, Fresh Start sees aggressive growth in 2014. Going where few micro-caps do, Fresh Start Private on Tuesday delivered guidance for 2014 sales from just two California clinics. Extrapolating information from prior marketing campaigns by the first clinic, Fresh Start Private believes that acquiring five patients per week is a conservative estimate. Between the existing clinic and the new San Francisco area business, the company forecasts sales of $3.6 million in 2014. Fresh Start Private says that attracting patients has never been a problem. The main delay in growth was related to the painstakingly slow process of major insurance plans to approve reimbursement.

As mentioned, the projection of a 300-percent increase in revenue is only from two locations and does not factor revenue that can be contributed from Arizona and Nebraska licenses, additional clinics that Fresh Start Private is pursuing, or the opening of any company-owned locations.

“Imagine what our revenue projections will look like once we have 10 clinics purchasing our program,” said Kent Emry, Chief Executive Officer of Fresh Start Private, in a statement today. “It’s also important to note that it’s not just about the money, but the more money we make, the more people can be helped,” he added.

At Tuesday’s trading price of 4 cents, Fresh Start Private is only commanding a market capitalization of $4.7 million. It’s also notable that the company only posted a narrow loss of about $200,000 in first six months of 2013, indicating that they are controlling expenses. Investors should be attentive to the growth plan and if the company can swing a profit, it will be trading at a ridiculously low price-to-earnings ratio while being much more than just a speculative play in a huge market. Proper due diligence is, as always, encouraged.

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