UDHI: Stock Gaining Steam on News of Q1 Profits
 Union Dental Holdings Inc. (OTCBB: UDHI) shares are up nearly 60% from Tuesday's low print of $.004 on news that the company "anticipates being profitable in the first quarter ending 3/31/2008".
The CEO has been "loading the boat" for year's now and was confident enough to buy in the $.09 range. Judging by his actions, I'd say Dr. Green is quite optimistic regarding his company's growth potential
over the next 2-5 years.
Now profitable in phase one of their expansion plans - building out a network of trusted dental providers to service labor union members - UDHI can now more easily seek out financing to move forward with Phase 2.
The second prong of the Union Dental's growth strategy is to become a full-service dental provider. According to a recent news release, UDHI will start by transitioning its Coral Springs Fl, facility into a full-service location, offering all aspects of dentistry.
UDHI will also pursue acquisitions of well-entrenched, full service providers regions heavily populated with or frequented by (major airline hubs) labor union workers. I believe that Southern California and Charlotte, North Carolina have been identified as hot markets.
Labels: UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
Union Dental Forging Ahead
 I hope everyone had a nice Thanksgiving! Now that we are all back to work after a good long turkey coma, we thought we would start the week off with coverage on one of our long term, pressure cookers. And it looks like there is a very bright future in store for Union Dental Holdings Inc. (OTCBB: UDHI). After turning a third quarter profit and growing revenues by nearly 22% during the first nine months of the year, UDHI has kicked things up a notch with its most recent move.
UDHI Designs Its System Union Dental announced today that they have entered into a purchase agreement to acquire a 7,000 sq ft dental building in Charlotte, NC. Representing the dawn of what could be a new era of growth for the company, UDHI plans to use the facility to house its newly acquired Jakubek Dental subsidiary. The new building will be the "cookie cutter" model for Union Dental's future expansion and will allow the company to generate revenue from a few new streams. By owning and operating dental practices, UDHI is able to cash in on its proven ability to produce dental prosthetics 20%-30% cheaper than the competitors. Ownership also provides access to a wider pool of sales opportunities than what was previously available when the company functioned simply as a middleman between practices and labor unions. In addition to prosthetic sales, UDHI can now generate revenues from actual dental procedures which we all know can cost a pretty penny. Calling All Unions 
Now leveraging its exclusive contract with the Association of Flight Attendants - Communications Workers of America (AFA-CWA) and using Charlotte as its springboard, UDHI aspires to take a multi-pronged approach to becoming the premium provider of dental coverage to America's labor union workers. Following the precedent set by the newly acquired Charlotte facility, Union Dental has stated plans to establish additional practices in areas heavily trafficked by labor union members (prong 1). The company will also continue to sell rights to areas of exclusivity to leading dental practices in regions where a physical presence is not yet sustainable (prong 2). Strategy Ensures Growth
This approach to expansion makes the most sense for UDHI going forward. The way that I see it, the company can now "test the waters" by offering areas of exclusivity to practices in key markets. For example, UDHI could sell rights to a practice in Los Angeles, monitor and evaluate its performance over a period of time, and then decide whether or not to acquire it or another facility in the area and establish their own practice. This eliminates a lot of guess work and ensures that UDHI follows the most profitable path to growth. A+ to management on their strategic mission! As I've mentioned in previous editions, UDHI's CWA relationship holds enough potential in itself to propel the company to new heights. Exhibiting UDHI's extensive growth potential, a corporate profile issued by the company in September of 2006, states "Assuming Union Dental achieved 25% adoption among CWA members alone and that each union worker has three additional covered family members, UDHI would coordinate more than $1.1 billion in dental services each year". Contrary to company progress, UDHI shares are trading at close to a 500% discount from one year ago. The company is exponentially more established now that it was a year ago and more properly positioned for future growth. Even looking through the string of press releases and earning report since 11/27/06 - which is a must for all with their eyes on this company- one has to wonder why UDHI still trades as the bargain basement price of under a penny. Labels: OTCBB: UDHI, UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
UDHI Turns a Profit, Shows Promise For A Sparkling Future
 There is a definitive point in the life of a public company when it officially earns its stripes as a strong contender in the small cap market. That day is today for Union Dental Holdings Inc. (OTCBB: UDHI) because this is the day they announced to their shareholders - and the market at large - that they are officially profitable. Savvy investors know that "being profitable" is often just a matter of managing debt. Even established companies (such as. . . say the majority of the airline industry!) are not profitable. But for public companies trudging through the murky waters of small cap infancy, being profitable is one of the best indicators to investors that management is on track for the bigger picture. What A Difference a Year MakesManagement announced in today's press release that third quarter earnings are in and UDHI has a whopping profit of nearly $39K! Now while this is probably not enough to buy a mobile home in Tornado Alley, it IS a vast improvement over the loss of $680,477 logged during Q3 '06. In addition, revenues are up nearly 22% for the first nine months of the year in comparison to 2006. Even if the company had a profit of $1.00, we would still be optimistic because being profitable means they have worked to ground zero - which is no easy feat for most small caps. Unfortunately, UDHI's thriving bottom line has not had a great deal of affect on it's stock price. Many of you have likely ducked for cover as the company's shares have depreciated over the past 12 months. But hopefully this news is just what investors need to see to put their money back on the table. UDHI has, now more than ever, the makings of a successful company and consequently a successful investment - even if the market disagrees right now. If Union Dental is new to your playlist, here are the cliffnotes on it. UDHI has been making dental coverage more affordable for America's labor work force which now totals more than 15 million members. Currently boasting a network of more than 1,800 dental practitioners across the U.S. and a customer base possessing nearly $200,000,000 in annual purchasing power, UDHI's labor union clientele is highlighted by such sizable organizations as: - Communications Workers of America (CWA) - (700,000 members);
- International Brotherhood of Electrical Workers - (IBEW) - (750,000 members);
- United Association of Plumbers and Pipe Fitters (UA) - (300,000 members); and
- Association of Flight Attendants - Communications Workers of America (AFA-CWA) - (55,000 members).
A Business Model For Growth UDHI's strategy of charging affiliated dentists an annual management fee of up to $6,000 per office for the rights to "areas of exclusivity" (based on patient population density) has proven to be quite effective. If the company can generate just $3,000 per provider, its current base of 1,800 would generate $5.4 million in revenues during 2008. For those that are counting, that equates to nearly 64% more than revenues logged thus far during 2007. With approximately 200,000 practicing dentists and 15.4 million union workers in the United States, many with multiple dependents, UDHI is blessed with a seemingly never ending supply of potential customers and knows exactly how to bring them in. This is very positive for the future as the company looks to further grow its network. Penny stocks are largely traded for their range of movement. The chance of a $100 dollar stock doubling in a week is pretty rare. But a penny stock doubling in a week is not only possible - it is common. So as UDHI is growing fundamentally on the inside, it is incredibly possible that it will reward investors exponentially on the outside. After all, it only has to go up a penny to give investors 100% return. Labels: UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
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 AboutIn 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 ProductionUDHI 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.
UDHI: Rocking From An Operational Standpoint - Treading Water From A Market Perspective
  In just under a week, Union Dental Holdings Inc. (OTCBB: UDHI) has hit the news wire with three positive announcements that show, in my opinion, that the company is making enormous strides towards both profitability and massive near, mid, and long-term growth. So whats my beef here? Well, A letter of intent to execute an acq that will add $10Mil to the books immediately and likely turn UDHI profitable; A statement that Q2 revs are expected to increase 20% over Q2 '06; and Mention of the company's flight attendant network growth by 100 providers: All failed to move the chart in an upward direction for very long.
Please give us your thoughts here folks. What is creating such a sense of hesitance in the market? Waiting for the deal to be finalized, don't like the current debt structure? Those are the only two major factors holding things back from what I see. Labels: UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
Q2 Revs To Grow By 20% at UDHI
 Union Dental Holdings Inc. (OTCBB: UDHI) has been making some serious progress as of late. Announcing a deal last week that should add $10 mil to the books immediately - today the company stated that Q2 revs should be up about 20% over Q2 '06. UDHI traded about 8.3 million shares between Thursday and Friday of last week but continues to hover around $.02. We're guessing that some may be waiting for the dust to settle and the finalization of the agreement to acquire Bellflower Dental before jumping aboard for the long haul. If that's the case, so be it - as long as you are aware of the value here at just over two pennies. Think about it like this: UDHI logged about $2.2 Mil in '06 Revs, Bellflower did just over $10 million. That is close to an 80% before the company brings in its own labor union customers. Also, as mentioned before - if UDHI can bring in about 4,000 new patients a year for the next five years at the newly acquired Bellflower facility, the building alone could be brings in nearly $50 million. Quite a bit of potential reward here for your money. Labels: OTCBB: UDHI, UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
Major Acquistition in Play for Union Dental
 In what could prove to be the micro-cap move of the summer, Union Dental Holdings Inc. (OTCBB: UDHI) has its sights set on a major acquisition - one that will essentially transition UDHI from a $2 million per year middleman, into a profitable, $12- $15 Million, dental powerhouse with virtually unlimited growth potential. This Deal is a Steal! UDHI announced today that it has signed a Letter of Intent to acquire Bellflower Dental (BD) in Bellflower, California for $5.0 Million. Bellflower, which had revenues of $10.2 Mil in '06 with an adjusted EBITDA of $521K, is not your average dental facility - not in the least bit! Moreover, research shows that a typical buyout price for a dental facility is approximately between 65%-75% of revenues - making this a very attractive pick-up. Besides profitability, a nearly 357% immediate revenue increase, and a shot at a senior exchange listing (AMEX anyone?), Bellflower brings with it a number of invaluable Telecom and Teamster union relationships. These inroads are expected to provide a solid complement to UDHI's exclusivity agreements currently in place with both the CWA local 9400 in Paramount and 9586 in Norwalk, which cumulatively insure more than 50,000. Bellflower's 16,250 square foot facility houses 60 dental chairs and focuses on every aspect of dentistry from the production of dental prosthetics to orthodontic surgery. The firm is strategically located about 20 minutes from Los Angeles, making it easily accessible to the thousands of union workers and their families in the area. The facility is more or less your current dentist office on steroids. Boasting babysitting services, a movie theater, in-house massages while patients wait, and video games for children, Bellflower patients may be some of the only people out there actually looking forward to their next cleaning!
The New Leader in Crowns and Dental Prosthetics?
Although CEO, Dr. Green has taken on more of an administrative role as of late, he has deep roots in the U.S. dental community and possesses decades of experience in conducting specific procedures and developing prosthetics. Going forward, it's highly likely we'll see Doc focusing on his bread and butter - very promising for near-term growth. With research indicating that costs associated with Porcelin-fused-to-metal dental crowns (non-precious metal) range between $600 and $910 - UDHI sure has a leg up on the competition. News dated 3/27/07 notes the company's proven ability to provide cost savings of between 20% - 30% by manufacturing dental prosthetics including crowns and bridges in- house. UDHI now has the capability to do this on a much larger scale than ever before. Look out! For a union worker with $1,500 in annual allowable dental expenditures - the typical allotment - a 30% discount on crowns - is huge. This may not seem big to some, but if I'm a flight attendant that needs a wisdom tooth out yesterday and have to wait until next year because my annual limit has been reached, the choice to switch over to UDHI and receive 30% more care than before is a no-brainer. Add in the fact that the facility is open nights and can keep tabs on little Jimmy while they pump you full of Nitrous Oxide and remove that pesky tooth - and the choice is pretty much made for you.
The Future - It's Bright!  UDHI is very confident in its ability to significantly boost revenues for the Bellflower facility over the near to mid-term. Commenting on this, Dr. Green stated: "Our contracts with CWA local labor unions in the area should add some significant revenue to the already existing income of the Bellflower practice. Through our marketing department we will offer some coupons for these CWA union members to try the Bellflower location for the first time." $2,000,000 to $50,000,000?By our accounts, if UDHI can attract approximately 4,000 new customers each year for Bellflower (if acquired) - which would account for only a minimal percentage of the CWA, Telecom, and Teamster union members in the area - the facility could be generating as much as $50 million per year, by year five of operations under the UDHI umbrella: (4,000 new customers per yr. X $2,500 (est. avg. dental/orthodontic allotment provided by labor unions minus $500) X number of years)This does not take even take into account growth to be experienced through the advancement of operations outside of this facility. If an earth-shattering acquisition that changes the face of an already high-potential company for the better, helps achieve profitability and provides instant revenue growth exceeding 350% doesn't excite you - we don't know what will. Do yourself a favor and weigh your options carefully here folks. Waiting until Friday could prove to be equally as painful as a root canal gone wrong. Check our reports section for past coverage on UDHI and the latest report on Tootie Pie Company Inc.Labels: OTCBB: UDHI, UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
Union Dental Reports Record Revenues
UDHI announced this morning that '06 revenues were up 7% on the year, approaching $2.2 million. Despite the recent stream of very positive news flowing out of Union Dental and a stellar 10-KSB filing, share price is down nearly 16% thus far in trading today. With a network of more than 1,600 dental clients and a customer base that possesses more than $192,000,000 in aggregate spending power, UDHI could represent a very profitable entry level opportunity. Already boasting contracts with huge labor unions including the Communications Workers of America (CWA) and International Brotherhood of Electrical Workers (IBEW); the company plans to grow its network by nearly 100% over the next 12-24 months. The way things have been progressing as of late, we feel UDHI has potential to appreciate significantly from current levels. Today's dip may be a perfect time to thing about hopping aboard. Labels: OTCBB: UDHI, UDHI, UDHI.ob, Union Dental Holdings, Union Dental Holdings Inc.
UDHI Expanding by the Day. See the Trend?
Union Dental Holdings Inc. (OTCBB:UDHI) continues to sign on new dental practitioners to its fast growing network at a breakneck pace. Although not quite as exciting as recent news, today's announcement that UDHI has signed on yet another 9 new locations, is impressive as it illustrates how hard management is working to facilitate immediate growth. With only 55% of Americans under age 65 equipped with dental insurance as of 2005 (mostly through their employers) compared with 84% for medical insurance, (National Association of Dental Plans), UDHI has plenty of potential customers knocking down its door. Labels: UDHI, UDHI.ob, Union Dental Holdings
UDHI: 51 New Locations and 118 New Provider in < 1 week
 We told you they were one to watch. Union Dental Holdings Inc. (OTCBB: UDHI) continues expand, signing on 51 new locations and 118 new providers in less than 7 days across Florida and Texas. Commenting on UDHI's recent Arizona business and the company's mission for 2007, CEO Dr. George further stated: "This is very beneficial to all our participating Unions. Where one Union's membership is scarce in an area Union Dental can combine several labor organizations to make it a worthwhile investment in marketing dollars for a dental office to join our network. After the completion of building the AFA network in late 2007 Union Dental hopes to sign additional national labor organizations and offer participation to our existing offices. This should provide additional revenues to Union Dental as well as adding more offices to handle the patient load requirements. We look forward to a turn around year for Union Dental as we announce new networks repeatedly in new areas of the United States over the course of 2007."
In our opinion, if UDHI is able to keep up the pace, 2007 could be a banner year. At a price of less than a nickel, UDHI should be relatively attractive for the speculative portion of your small cap portfolio.
Labels: Dental Coverage, Dentist, OTCBB: UDHI, UDHI, UDHI.ob, Union Dental Holdings
On Track With Union Dental
 Did you know that Kenny G is a great golf player? And these days has more time to golf than ever, not because his muzak can be heard across the globe, but because he was one of the 10 original shareholders of Starbucks! Who would have guess that coffee, a long time staple across the world would take on new flavors and fancy names and become a hot item in the business world, not just commodities. Kenny G spotted an opportunity by looking closely at what society was putting higher on its priority list. Say Cheese! Teeth for instance. I know. It sounds pretty silly but think about it. Look at the emphasis our culture puts on a healthy smile. Braces, once feared by teenagers everywhere has become a typical rite of passage. Teeth whitening products may be costly, but just ask the consumer boasting a beaming set of teeth if it was worth it. Of course! Priorities!  A Household Necessity! Viewed as a symbol of wellness in our society, a nice pair of pearly whites has been credited for closing many a deal. Unfortunately, for a growing number of Americans, it is becoming simply too expensive to maintain dental health (Americans spend > $70 billion per year on dental procedures). Giving credence to this statement, a bit of digging uncovers that dental costs have skyrocketed up more than 50% over the past 10-12 years.
Dental insurance is becoming a household necessity. However, options are extremely limited for many, including the elderly (Medicare has no dental coverage), the disabled (Medicaid is reducing coverage in some states) and those working for small businesses. However, there is hope for America's 15.4 million union workers. This has investment opportunity written all over it. Lucky for you, we have already done some scouting and have found a solid smallcap company that will make a strong and profitable addition to your portfolio.
Our newest portfolio company, Union Dental Holdings Inc. (OTCBB: UDHI) has been dedicated to making dental coverage more affordable for U.S. union members for more than two decades and continues to expand its network. Its the Big Unions! Initially focusing on bringing a cost effective dental program to the Communications Workers of America ("CWA"), which consisted largely of workers from AT&T, Bell South, and Lucent Technologies,  UDHI has since amassed a network of nearly 1,600 practitioners spanning more than 15 states. By utilizing the existing insurance of the union client and fostering partnerships with dental groups in key geographic locations, UDHI is able to drastically reduce out of pocket expenses for the client while matching them with an optimal provider. Obviously this plan can't work without signing on some major unions with some significant member populations. Not a problem for UDHI. The company is already working in conjunction with a number of massive outfits including, the:- Communications Workers of America (CWA) - (700,000 members)- International Brotherhood of Electrical Workers (IBEW) – (750,000 members)- United Association of Plumbers and Pipe Fitters (UA) – (300,000 members)- Association of Flight Attendants - Communications Workers of America (AFA-CWA) – (55,000 members). Take into consideration that unions are growing at their fastest now than in the past 20 years and you can see where we are going here. Monetizing the Situation:
 Announcing recently that 2006 revenues are expected to be in the ballpark of $2.2 million (up nearly 7% from '05), UDHI recently stated plans to expand its network by an additional 2,000 dentists over the next 12-24 months. So how does this operation work? Just how does UDHI rake in millions by basically acting as the middleman? By entering into exclusivity agreements with union organizations, under which UDHI; is guaranteed sole access to potential union dental patients within specified geographic boundaries, the company is then able to charge dentists a fee to access the operating zone. Fees, according to the company, average out to approximately $5,000 per contract. With more than 20 years worth of experience and industry contacts, a member base possessing $192,000,000 in annual purchasing power, and the proven ability to provide affordable dental care to union members, we don't anticipate UDHI having any problems attracting new dentist partners. Apparently management feels the same way. In today's most recent release,U DHI stated that the company hopes to penetrate 5% of the country's 200,000 dentists over aspan> the next few years. Let's do a little math here: (200,000 dentists x 5%) $1,500 (per zone access charge) = $15 million in revenues, not too bad! Of course, one of the biggest complaints among medical practitioners who work with insurance companies, is the delay with which they are paid. Voila! Problem Solved. UDHI Transax International, to provide a claims adjustment/payment processing system that will assure payment reaches doctors/dentists within 24- 36 hours of the patient being treated. If the prospect of receiving payment in less than two days, rather than turning bills over to collectors and potentially recovering only a portion of costs, doesn’t attract a few customers, who knows what will.
At the most recent market price of less than five cents, we see a tremendous upside to what is going on at Union Dental Holdings Inc. (OTCBB: UDHI). The company's recent agreement with AFA- CWA opens the door to the employees of such airlines as United, US Airways, Northwest, Aloha, Air Wisconsin, Air Tran, America West, American Eagle, Atlantic Southeast, ATA, Piedmont, Miami Air, Alaska, PSA, Mesa, Mesaba, Midwest, Spirit, Horizon & Hawaiian. Start your due diligence on this one. Kenny G did not invent Starbucks – he just saw opportunity written all over it! Labels: Airlines, Dental Coverage, Dentist, Jet Blue, OTCBB: UDHI, Small Cap Gem, UDHI, UDHI.ob, Union Dental Holdings, US Airways
|
|
Union Dental Holdings Inc. (OTCBB: UDHI) shares are up nearly 60% from Tuesday's low print of $.004 on news that the company "anticipates being profitable in the first quarter ending 3/31/2008".
