Ok, lets get this to work,, here is the link and the article >
http://www.wall street corner .com/daily.html?ID=285&Unique=yesPrevious Larry Oakley's Comment:
Click Here for Today's Larry Oakley's Comment.
Date Posted: 08/28/03
Global Medical Products Holdings, Inc. (Pink Sheets/GMDP)
A Turnaround In Progress
This is a situation I've watched for the last three years. I liked one of its predecessor company's products. It became a shell, new management stepped in, & now it has almost reached the end of a major restructuring & refinancing effort.
Knowing about a turnaround at as early a point as possible to its culmination represents a strong advantage -- thus my decision to bring it to your attention at this time.
It completed the acquisition of EZ Trac Labs in January, & is in the process of completing two other acquisitions (Global Glass, & Shanghai Econ plus Guangdong).
Based on those three acquisitions, & assuming that they would have historically been in place, I have been told that GMDP would have done about $10-12 million in revenue with about an 8-10% net profit contribution to U.S. overhead, thus having resulted in a net annual profit to GMDP.
In addition, a significant building acquisition underway should add about $7.5 million to shareholders' equity when completed. That should qualify GMDP for a Nasdaq Small-Cap listing.
There is also an anti-bacterial license for certain countries in the far east, including China & Japan, which could add to revenue & profit potential.
Summary of Recent News
7/31/2003:
As stated in GMDP's latest 10-Q, the company in 7/2003 began negotiations to acquire a finished one-story, 80,000 square foot concrete block & brick facility. The building has 19,775 square feet of carpeted office space & is located on 15 acres with a 3.7 acre adjoining tract.
The building, located in the southern part of the U.S., was completed in 1995 & is in close proximate to major cities & industrial areas. The property has an approximate fair market value of $8,000,000 based on an independent appraisal. There is currently $1,500,000 in encumbrances.
The facility will be used for EZ Trac Labs & as a manufacturing facility for certain acquired technologies. Negotiations have led to a letter of intent signed by the company & a representative of the selling organization dated 7/25/2003.
8/11/2003:
The last legal proceeding against the company was settled & GMDP made its first payment in the settlement of the Goulding Trust v. 37Point9 (now GMDP) legal action. The second & final payment is scheduled for 11/15/2003. GMDP was in final negotiations on a funding package to provide for the acquisition of a modern 80,000 square foot building located in a regional corridor of manufacturing & industrial facilities in Southeast U.S. It will be used for EZ Trac Labs, manufacturing & office space.
That funding will allow GMDP to acquire Shanghai Ecom & Global Glass Source, & fund the manufacturing of certain patented technologies the company is licensing.
GMDP president Doug Brown stated that the efforts to remove the stigma of previous management is finally coming to reality. "We have worked hard to turn this company from a `shell' corporation into a viable revenue generating, operating entity. The addition of EZ Trac Labs in January has already begun the revenue process. With the completion of the funding & subsequent effecting of the acquisitions, the company will have an approximate book value of $0.10 per share. This is an enormous turn-around from the company's position of 18 months ago."
8/26/2003:
GMDP announced it entered into definitive negotiations for a $3 million financing package with a Far Eastern investor, anticipated to close shortly.
Doug Brown said: "This will allow the company to move forward on all aspects of its acquisition plan. Previously announced closure settlements using restricted stock in the company are being rewritten whereby the consideration for the acquisitions will be in cash. The restricted stock that was previously issued & held in trust pending the final closure will be returned & cancelled."
Use of proceeds:
-- $1,500,000 to eliminate existing liens on property being purchased in
Alabama
-- $400,000 which represents first two payments to Shanghai Ecom
-- $175,000 to satisfy a 12/31/2003 note due on EZ Trac Labs
-- $150,000 as part of the antibacterial licensing agreement previously announced
-- Balance to be used as working capital & the elimination of the amounts owed under current liabilities
The net results from certain payments would result in the recapture of approximately 18,000,000 shares of common stock that have been prior issued.
My Opinion
I like what the new management has accomplished so far. I suggest that you look into this emerging turnaround. As I write this at 10:00 a.m. on 8/28/2003, GMDP (GMDP.PK at Yahoo) is trading at a modest $0.005. Call Doug Brown at 619-222-2568