UDHI CEO A Believer, Investors Take Notice
Would you build a nearly 30,000,000 share, or 50% ownership position in a company that you didn't whole heartedly believe was destined for glory?
Neither would Union Dental Holdings Inc. President/CEO Dr. George D. Green!
Who would be "in the know" more than the man that started it all? After all, however, the writing may be on the wall here folks.
Expanding and Contracting
UDHI did just announce plans to execute a $10 million acquisition that holds the potential to generate annual revenues of $50M within 5 years AND morph the dental industry innovator from a $2M a year "up and comer" into a $12-$15M prototype for success with seemingly unlimited room for growth.
In addition to the potential Bellflower acquisition, things have never been better at UDHI. News out today provides credence to this theory as management states the expectation of a 45% revenue increase in Q2 '07 over second quarter '06. This would mark four (4) consecutive quarters of revenue growth, a very positive indication that the company has embarked upon a new era of expansion.
Something to Smile About
In order to sustain such rapid growth, UDHI must continue to expand its provider network. Not a problem! The company's network, which serves members of some of the country's largest labor unions (CWA, IBEW, UA, AFA-CWA) has ballooned to 1,700 providers in a relatively short period of time and is pegged by management to grow by another 2,000 over the next year or two.
Speaking about UDHI's recent performance and outlook going forward, President/CEO Dr. Green stated "Although the accounting for the quarter ending 6/30/2007 has just begun, the indication shows a large growth over the same time period last year. We had a one time income this quarter which created the record revenue. We expect our sales to grow at a significantly positive rate in the coming year as we continue to expand our network of local, regional and national agreements with unions to provide discounted dental services to their members."
It pays to be in the Union...
Union Dental, with a network of nearly 1,700 dental providers, would generate annual gains of $5.1M (more than 2X '06 revenue) if it was able collect an average of $3,000 from each dentist client for access to the company's exclusive union patient areas (management outlines that providers pay up to $6,000 per office location). This is with ZERO growth. I'll bet my dollar to your dime that the growth figure we see down the road is nowhere near the ole goose egg, mark my words.
As stated in previous editions, the near-term opportunity pool here is exciting at the very least. With their hooks in the Communications Workers of America (CWA), if UDHI is able to double its local union client base over the next few years, bringing adoption rates to approximately 20%. CWA contracts alone would provide access to a market opportunity in excess of $1 billion. This is yet another reason to stock up at a low cost basis. Starting to see what Doc Green is thinking here?
Potential in Porcelain Production
UDHI also has another log on the fire in regards to its competitive advantage in the dental prosthetics arena. This has been mentioned before, but hey, it's likely to bring in some big money - maybe not so far down the road as you'd think.
A bit of digging uncovers that the typical Porcelain-fused-to-metal dental crowns range in price from roughly $600 to $900. With the proven ability to manufacture crowns and bridges about 20% - 30% cheaper than anybody out there, I'd say UDHI may have the market cornered here. If they can produce at increasingly high volume and provide relatively the same level of discount, this one operational segment alone could be enough to break the bank in the not so distant future.
Since union workers typically receive only $1,500 in annual allowable dental expenditures - a 30% discount pretty much brings any worker in one of UDHI's coverage areas through the door.
So what we have here is a rapidly emerging micro-cap venture with more potential revenue streams than you can shake a stick at. Not to mention the fact that UDHI is actually capitalizing on its own opportunities in a very aggressive manner. UDHI's CEO picked up about 3,000,000 shares on 6/27/07. If that is not a testament to how much potential there is here, I don't know what is.
Neither would Union Dental Holdings Inc. President/CEO Dr. George D. Green!
Who would be "in the know" more than the man that started it all? After all, however, the writing may be on the wall here folks.
Expanding and Contracting
UDHI did just announce plans to execute a $10 million acquisition that holds the potential to generate annual revenues of $50M within 5 years AND morph the dental industry innovator from a $2M a year "up and comer" into a $12-$15M prototype for success with seemingly unlimited room for growth.
In addition to the potential Bellflower acquisition, things have never been better at UDHI. News out today provides credence to this theory as management states the expectation of a 45% revenue increase in Q2 '07 over second quarter '06. This would mark four (4) consecutive quarters of revenue growth, a very positive indication that the company has embarked upon a new era of expansion.
Something to Smile About
In order to sustain such rapid growth, UDHI must continue to expand its provider network. Not a problem! The company's network, which serves members of some of the country's largest labor unions (CWA, IBEW, UA, AFA-CWA) has ballooned to 1,700 providers in a relatively short period of time and is pegged by management to grow by another 2,000 over the next year or two.
Speaking about UDHI's recent performance and outlook going forward, President/CEO Dr. Green stated "Although the accounting for the quarter ending 6/30/2007 has just begun, the indication shows a large growth over the same time period last year. We had a one time income this quarter which created the record revenue. We expect our sales to grow at a significantly positive rate in the coming year as we continue to expand our network of local, regional and national agreements with unions to provide discounted dental services to their members."
It pays to be in the Union...
Union Dental, with a network of nearly 1,700 dental providers, would generate annual gains of $5.1M (more than 2X '06 revenue) if it was able collect an average of $3,000 from each dentist client for access to the company's exclusive union patient areas (management outlines that providers pay up to $6,000 per office location). This is with ZERO growth. I'll bet my dollar to your dime that the growth figure we see down the road is nowhere near the ole goose egg, mark my words.
As stated in previous editions, the near-term opportunity pool here is exciting at the very least. With their hooks in the Communications Workers of America (CWA), if UDHI is able to double its local union client base over the next few years, bringing adoption rates to approximately 20%. CWA contracts alone would provide access to a market opportunity in excess of $1 billion. This is yet another reason to stock up at a low cost basis. Starting to see what Doc Green is thinking here?
Potential in Porcelain Production
UDHI also has another log on the fire in regards to its competitive advantage in the dental prosthetics arena. This has been mentioned before, but hey, it's likely to bring in some big money - maybe not so far down the road as you'd think.
A bit of digging uncovers that the typical Porcelain-fused-to-metal dental crowns range in price from roughly $600 to $900. With the proven ability to manufacture crowns and bridges about 20% - 30% cheaper than anybody out there, I'd say UDHI may have the market cornered here. If they can produce at increasingly high volume and provide relatively the same level of discount, this one operational segment alone could be enough to break the bank in the not so distant future.
Since union workers typically receive only $1,500 in annual allowable dental expenditures - a 30% discount pretty much brings any worker in one of UDHI's coverage areas through the door.
So what we have here is a rapidly emerging micro-cap venture with more potential revenue streams than you can shake a stick at. Not to mention the fact that UDHI is actually capitalizing on its own opportunities in a very aggressive manner. UDHI's CEO picked up about 3,000,000 shares on 6/27/07. If that is not a testament to how much potential there is here, I don't know what is.
Labels: UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
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