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This Month's Tiny Gems - April 2010
Five Star Quality Care, Inc. (NYSE AMEX: FVE)
Metropolitan Health Networks Inc. (NYSE AMEX: MDF)
Tiens Biotech Group (USA) Inc. (NYSE AMEX: TBV)
Five Star Quality Care, Inc. (NYSE AMEX: FVE)
Five Star Quality Care, Inc. (NYSE AMEX: FVE), a nationwide healthcare and senior living services provider, has set itself apart as a standout investment opportunity.
First of all, Five Star is a leading player in an industry facing explosive growth. According to the U.S. Census Bureau, beginning in 2011, the population of people 65 and older will start to grow faster than the total population. In half of all U.S. states, the number of people over 65 will double by 2030. By that time, fully 1/5 of the total population will be senior citizens. As a result, the demand for senior living and support services is expected to top the list for decades.
Five Star is in an excellent position to benefit from all this, with 200 independent living, assisted living, full service retirement communities, and skilled nursing facilities in 30 states, in addition to pharmacies and rehabilitation centers. The company currently has 21,000 employees all dedicated to going above and beyond government standards and traditional ideas about retirement living.
Beyond this, Five Star and its centers continually excel, setting industry-wide standards and receiving various awards for performance and creativity. The company recently received the “Best of the Best” Award for their Five Star Signature Recipebook, featuring regional recipes from more than 100 of the company’s senior living communities throughout the U.S. They’ve also been recognized for their Revelations Alzheimer’s Care program and other programs. Their individual employees routinely receive awards for providing extraordinary care.
Financially, the company’s revenue, earnings, and solid balance sheet would suggest a much higher P/E ratio than it has. With more than a billion in annual revenues, Five Star trades at a market cap of just over $113 million, and well below its book value per share of $3.90. Five Star represents a unique opportunity to ride what will inevitably become a tidal wave of demand.
Metropolitan Health Networks Inc. (NYSE AMEX: MDF)
Metropolitan Health Networks Inc. (NYSE AMEX: MDF), popularly known as Metcare of Florida, is a growing provider of health care services with Medicare, covering approximately 35,000 customers in 18 counties of south and central Florida. More significantly, it’s the company’s vision to become Florida’s premier patient-centered medical home practice for people with Medicare, a huge market in a state like Florida.
If any health care organization can fill that role, it’s Metcare. Already a leader in healthcare development, the company recently became the first health care organization in the entire state to achieve NCQA (National Committee for Quality Assurance) certification. The honor recognizes Metcare’s primary care practices as a level 3 National Physician Practice Connections® – Patient-Centered Medical Home™ (PPC®-PCMHTM).
According to the NCQA, the Patient-Centered Medical Home (PCMH) is an approach that seeks to strengthen the patient-physician relationship by replacing episodic care with coordinated care and a long-term healing relationship. PPC®-PCMHTM includes nine standards for medical practices to meet, including use of patient self-management support, care coordination, evidence-based guidelines for chronic conditions and performance reporting and improvement. To be recognized as a PCMH, practices need to demonstrate the ability to sufficiently meet the criteria of these strict standards.
All of this comes on the heal of an especially successful response to an independent third party customer satisfaction survey, where the company received high marks for overall healthcare service, doctor communication, and office staff performance. In addition, the company recently reported continued financial success with the release of 2009 results, showing a whopping 40% increase in net annual income.
Founded in 1996, the company is believed to owe its success to its almost fanatical devotion to providing the very best medical care and service to every customer every time. Their willingness to do whatever it takes to meet the highest standards of medical treatment and personal service has won them a dedicated customer base that will support its continued growth far into the future.
Tiens Biotech Group (USA) Inc. (NYSE AMEX: TBV)
Tiens Biotech Group (USA) Inc. (NYSE AMEX: TBV) conducts its main business operations through its 80% owned subsidiary, Tianjin Tianshi Biological Development Company Ltd., and its wholly-owned subsidiary, Tianjin Tiens Life Resources Company Ltd. The company, through its Tianjin, China-based subsidiaries, primarily engages in the research, development, manufacturing and marketing of nutrition supplement products. These products include wellness products, dietary nutrition supplement products and personal care products.
The company derives its revenues principally from product sales to affiliated companies both inside and outside of China. Tiens sells its products for distribution in China through an affiliated company – Tianshi Engineering. Tianshin Engineering in turn sells the products to consumers through chain stores, affiliated companies and its more than 100 branches.
Tiens sells its products overseas through three methods. The company uses an extensive direct sales distribution network, a multi-level marketing sales force of overseas affiliates located in approximately 55 countries and independent distributors. These independent distributors may use the products themselves and/or resell them to other distributors or consumers.
Since its establishment, the company has developed and produced about 40 nutrition supplements, which include those for dietary needs. Tiens has also developed and produced more than 25 personal care products, which include skin care products and personal washing products. The company, through its Biological subsidiary, develops these products at its own product research and development center. This center employs highly qualified professionals in the fields of pharmacology, biology, chemistry and fine chemistry.