Sign Up NowThis Month's Tiny Gems - April 2012

Auxilio, Inc. (AUXO)
SEFE, Inc. (SEFE), Inc. (STMP)
Uranium Energy Corp. (UEC)




Auxilio, Inc. (AUXO)


Auxilio, Inc. (AUXO), together with its subsidiaries, engages in the provision of outsourced managed print services (MPS), a crucial back-office process for hospitals that can yield significant cost savings if managed correctly. Auxilio is the only MPS company in the U.S. focusing exclusively on the healthcare industry, primarily hospitals. More importantly, as hospitals move to strictly electronic medical records, Auxilio can serve the industry as a strategic advisor with e-records compliance.


Auxilio's analysts, consultants, and resident hospital teams work with senior hospital financial management and IT department heads to determine the best possible long term strategy for managing the millions of documents produced by their facilities on an annual basis. Auxilio's print management programs help its clients achieve measurable savings via a fully outsourced print management process.


Auxilio currently has a market cap of $20.42 million. Both net revenue and service revenue increased from 2010 to 2011. Last year, net revenue rose by $6,438,067 to $21,845,619 year-over-year. Service revenue in 2011 totaled approximately $19,800,000 compared to approximately $14,700,000 in 2010. These numbers translated to revenue per share of $1.13 and $2.71 million in gross profit. Also of note, in 2011 AUXO's share price increased 31%, outperforming the S&P 500 by 27%.


As more and more health care records, such as prescriptions, physician's reports, lab results, nurse's notes, and doctor's charts are converted strictly to electronic format, hospitals will have an incentive to hire specialists such as Auxilio to manage and maintain this information so that hospitals can focus on providing healthcare. Auxilio has positioned itself well for future growth.






SEFE, Inc. (SEFE) is focused on developing and deploying a promising solution to our world's energy problems. It is now more obvious than ever before that fossil fuels are increasingly more difficult to find and harvest. It is also well known by now that alternative energy, such as solar, wind and nuclear, has its own list of unsolvable issues. SEFE's unique technology, in comparison, harvests unadulterated, carbon-free, always-on and problem-free energy from a never ending source.


The company calls it True Energy because it's not an alternative to anything and it certainly isn't petroleum based. SEFE's solution works by capturing and converting naturally occurring static electricity in the atmosphere into a constant, abundant and decidedly green source of renewable energy. The patented technology has been designed to be robust, easy to implement and user-configurable from the start so that these systems can be deployed anywhere and generate current usable by any localized source.


Because the cost of deploying and maintaining SEFE systems is relatively low, the company believes it can sell a kWh of electricity at $0.03 per unit. In comparison, nuclear energy costs approximately $0.14 per kWh and wind energy costs approximately $0.07 per kWh. SEFE is currently prosecuting four pending United States Patent Applications to protect their core intellectual property. Once issued, these patents will provide barriers to entry and fortify their foundational business construct.


The company has grown from a national company to an international concern with planned partnerships in China, India, Australia and the EU. SEFE is also well supported by a highly capable management team that has accumulated more than 30 years of experience in corporate management and governance. The company also employs a host of associates who are experts in fabrication and product development, FAA regulations, engineering and utility consultation, among others.
, Inc. (STMP), Inc. (STMP) is the leading provider of Internet-based postage solutions. With an Internet connection, PC, and printer, any business can use Stamps' service to mail and ship a variety of mail pieces, including postcards, envelopes, flats, and packages. Stamps sells a wide variety of types of USPS postage, including First Class Mail®, Priority Mail®, Express Mail®, Media Mail®, Parcel Post®, and others.


Stamps has a market cap of $456.5 million. Its EBITDA was $17.8 million with an operating margin of 17%. Stamps' profit margin was 25% and its gross profit margin was 74.2%. Looking into the future, Stamps' estimated EPS growth is targeted at 1.73%, which is in line with the overall industry given the current economic climate.


Although Stamps' operations are geographically limited to the United States, the potential size of Stamps' market is very large. Stamps' internal estimates of the number of potential customers is: (1) 21.3 million sole proprietorships; (2) 4.6 million small businesses with 1 to 9 employees; (3) 1.2 million small businesses with 10 to 99 employees; (4) 109 thousand medium and large businesses with 100 or more employees, which represent 1.5 million separate locations.


Stamps has unique product solutions for each of these groups. Furthermore, Stamps estimates there approximately 24 million non-income generating home offices such as those used for corporate after-hours work or telecommuting that could benefit from Stamps' products. Consumers also comprise a part of Stamps' customer base. Each of these segments in total represents a potential market worth about $43 billion.




Uranium Energy Corp. (UEC)


Uranium Energy Corp. (UEC) is a U.S.-based exploration and development company focused on uranium production in the U.S. The company's operations are managed by professionals who have earned a reputable profile through many decades of hands-on experience in the key facets of uranium exploration, development, and mining.


The company is the newest uranium producer in North America, operating the first new uranium mine in the U.S. in over 6 years. In 2011, Uranium Energy completed its first full year of production with a cumulative total of 236,000 lbs. of uranium produced at average cost of $16 per pound, which the company then sold at the current spot price of $52 per pound. Uranium utilizes the In-Situ Recovery (ISR) production method, which is a more cost-effective and environmentally friendly way of mining uranium.


Well financed to execute on its key programs, the company controls 28 projects in the U.S. with total resources of more than 41.5M lbs. U3O8. Uranium Energy's fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, eliminating the need to construct a new processing plant on site at each project.


The company's strategy of acquiring exploration databases and leveraging those databases to generate acquisition targets has proven to be effective thus far. With plans to continue aggressively pursuing this strategy, Uranium Energy is well positioned to capitalize on the world's overwhelming demand for more uranium, more energy, cheaper energy, and a cleaner environment.