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Health Care Enterprise Group, One That Looks To Have An Exciting Future. (HCEG)     

goldfinger - 22 Oct 2003 16:09

Yes I know Im on holiday so Ill make it quick. Just had a phone call and an e- mail from a City pal of mine and hes drooling over this company. Hes a trust worthy chap and has given me some fantastic tips over the last 10 years.
Hes going on about it being a ten bagger, but I dont like that kind of talk, best to just see how the market rates it. He says theres going to be a lot of news flow so that should provide for a momentum driven price. Have to say I have never known him quite so excited about a stock. Ive just gone in and bought a nice holding.

Heres the e-mail he sent me. It might be worth your while having a dabble. Citywire seem to think its going to be a hit.

Health minnow makes strong return to market
Published: 11:51 Wed 22 Oct 2003
By Joanne Wallen, Associate Editor
Email to a friend


The chief of Healthcare Enterprise Group sold his last business to private healthcare firm Bupa and he's now raring to go again; the business may be worth a second look.

Shares in the 24 million AIM-listed business were suspended in August pending a couple of key acquisitions, and returned to the market on Monday after the deals were announced.


Healthcare Enterprise Group (HCEG) (HCEG) paid a total of 11.5 million for the Safa Group and Industrial Pharmaceutical Service (IPS) as well as a 60.7% stake in SafaTec. The company raised a total of 10 million via a placing of shares at 1p to fund the acquisitions and also took on 3.5 million of bank debt.


Chairman Stuart Bruck, who previously founded private medical services business Barbican, which he sold to Bupa in January 1999, is hoping to build a significant business providing medical services to corporate customers. He is hoping to be a consolidator in what he told Citywire is a very fragmented market.


Both Safa and IPS provide first aid kits, training, first aid suites and a host of other medical and occupational health services to large corporate customers such as British Airways, Marks & Spencer, BT, Sainsbury and government procurement agency OGC. Both companies also have advanced 'replenishment systems,' which enable companies to maintain adequate supplies to satisfy UK health and safety legislation.


Bruck said these acquisitions would provide a 'platform' for further acquisitions.


The company had previously accrued minority stakes in a total of 14 small healthcare services companies in the UK and the US. In March it listed on AIM by reversing into a cash shell.


Bruck said the minority stakes offered it an entry into the market, but the company has now decided to focus on wholly operating and owning businesses. It has therefore identified four of its US businesses that it would like to buy the remaining stakes in. These are all within a two hour drive of the company's Los Angeles office, and would be run from there.


The company has also 'packaged up' the remaining eight businesses with a view to selling each of its minority stakes. Bruck said the pricing being talked about is already ahead of the indicative pricing given in March.


Safa and IPS apparently already have a 30% share of the corporate medical services market in the UK. They are both cash generative from operating activities. Both companies are based in the North of England and do not have a huge penetration in London, where Bruck believes the company has 'a huge opportunity.'


He reckons they have so far penetrated around 50% of the FTSE 100, and therefore have a 'great client base' to which they should be able to sell additional services.

SafaTec has interests in a number of early stage companies that have developed some innovative healthcare products and technologies, which the company is hoping to commercialise. For example, Safa has secured a sole international distribution agreement with Ebiox, a manufacturer of a unique decontaminant and cleansing product range based on a patented formula. SafaTec UK has a 35% interest in Ebiox and HCEG is negotiating to acquire a controlling interest for the enlarged Group.


Bruck does not expect to make any more major acquisitions in the next year or so, but thinks there are a lot of small players that the company might be able to mop up.


'This is very exciting, I am looking forward to digging in,' he said.


Shares are currently at 1.7p.


Citywire Verdict:


The corporate healthcare market is becoming increasingly regulated, which favours HCEG. Bruck's track record should also be worth buying into.


The corporate structure looks pretty complicated at present with all of the minority shareholdings, but Bruck now seems keen to get the point quickly where HCEG controls the majority of the businesses it operates.


This is obviously early days, but for anyone that fancies a speculative punt on a penny share, HCEG is worth a second look.ENDS.

Well it looks very good to me although its a speculative punt, what isnt in the markets today. Good chance to get on board aswell on a bad day.

Please DYOR. You are responsible for your own buying and selling actions.

GF.

ethel - 12 Sep 2005 15:11 - 247 of 316

HCEG claim that Ebiox kills Avian Flu Virus,meaning that it can be used to clean surfaces which might be infected.Why has the share price been allowed to languish?
IMO this company has many excellent products and should be supported by investors,not ignored.
Ethel

Troys - 12 Sep 2005 15:29 - 248 of 316

ethel I agree this is a very good company with excellent products. WE NEED NEWS to move this again.

loadsadosh - 27 Sep 2005 14:04 - 249 of 316

What a rare and splendid opportunity to buy in to this stock i do not think that we will see this sp again on such a quality company

Loadsa

loadsadosh - 27 Sep 2005 14:42 - 250 of 316

Buys coming in faster now, if your of a mind to get on board best do it today I think
Loadsa

loadsadosh - 29 Sep 2005 12:23 - 251 of 316

Moving up nicely

Loadsa

substp - 01 Oct 2005 00:52 - 252 of 316

There appears to be some conflicting reports about Bioquell (A Quoted Client of Investec) and HCEG . Bioquell with similar problems as HCEG was given a hold by Investec and HCEG was given a reduce .Gratefully researched by another member of this board .

Investec Widens Bioquell 05 Pretax Loss

Wednesday, September 28, 2005 12:07:36 PM ET
Dow Jones Newswires



1556 GMT [Dow Jones] Investec Securities expects Bioquell (BQE.LN) to make a pretax loss of GBP500,000 in 05 against previous expectations of break even. The move takes into account slower-than-expected trading in 1H but would have been worse were it not for IFRS, under which the company is forced to capitalize development expenditure, thus reducing operating costs. In 06 pegs pretax profit at GBP500,000 and in 07 at GBP1M. Maintains hold recommendation. Closed unchanged at 100.25p. (DWE)


Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com



(END) Dow Jones Newswires

September 28, 2005 11:56 ET (15:56 GMT)

Copyright (c) 2005 Dow Jones & Company, Inc.

Taken form:

http://www.newratings.com/analyst_news/article_1038205.html
--------------------------------------------------------------------------------

hangon - 21 Oct 2005 16:03 - 253 of 316

HCEG and Bird'flu
My non-expert understanding is that we haven't got to the Pandemic situation yet - Bird'flu is potentially dangerous to the World because it will destroy birds - whether it "crosses-over" to other animals and particularly man is another problem....indeed it's another raft of problems. Loss of wild birds will have unexpected repercussions - loss of chickens and farm animals will affect meat production for at least a year - (=so better go veggie, right now and get used to it.).
China and the far-East has been responsible for many flu epidemics and this is just another - until the strain is understood we cannot formulate a vaccine, so stories of "Stockpiles now" are meaningless - -
If HCEG surface decontaminate was widely available (it isn't), would it stop bird'flu? - I suspect it would have no effect - how are you going to prevent the spread of something that happens in the air? When birds are gathered together they breathe the same air - theat's where the spread occurs. If you were a chicken-farmer it might be sensible to wash the outhouse down but as to covering every surface - oops that is incredibly simplistic and would have little effect IMHO.
For these reasons the HCEG sp hasn't pushed up.....the human-varient isn't yet announced and may pass over.........and Ebiox hasn't started to be used in quantity - - - even our NHS seems incapable of giving alternative washes any trial - prefering to send memos to staff and orderlys to make sure they wash their hands.....yet still the fundametial problem with MRSA continues - there is no Bio -cure because we have (over?)mis-used anti-biotic medicines for many years and it is we who have created resistant-strains.
By all means clean surfaces, wash hands and so on, but I doubt it is the real answer and secretly the Market knows it.

ethel - 26 Oct 2005 15:19 - 254 of 316

Have a read of the 1 March RNS from HCEG which emphasizes the importance of TrionicTM in the fight against Avian Flu.
Something is happening with the sp at last with solid buying today.
If someone is willing to pay over 100 for ONE packet of Tamiflu sold on EBay,then I see no reason why investors won't pile into HCEG now that the danger seems to be getting nearer to home!
LOL Ethel

loadsadosh - 16 Nov 2005 14:41 - 255 of 316

Anybody wanting to get into HCEG, todays honest interim results have seen a knee jerk drop in value of 65% an unbelievable buy situation, given the company profile I just popped another 20.5K into the portfolio
loadsa

Troys - 16 Nov 2005 14:49 - 256 of 316

Whilst I have been hit today badly, I have bought more to hopefully catch the bounce.

loadsadosh - 16 Nov 2005 14:56 - 257 of 316

More buys than sells and increasing all the time, therefore pricing of stock is due to market sentiment on an overall down day. Really looking forward to the adjusting bounce on this one

Loadsa

driver - 16 Nov 2005 15:23 - 258 of 316

Loadsa
It needs a tonic not a bounce, not looking in very good health at the moment.

loadsadosh - 16 Nov 2005 15:44 - 259 of 316

Driver
I'm hoping that the smart money is following the fundamentals on this. At this time there are 800K more buys than sells and still the market is ticking it down, something is I think distorting the action considering we are looking at a company with an excellent product range and a 30M market cap. If Im wrong its going to hurt Ouch Ouch Ouch

Loadsa

optomistic - 16 Nov 2005 15:57 - 260 of 316

Loadsa, good luck. I haven't plucked up the courage to pile in again.

driver - 16 Nov 2005 16:02 - 261 of 316

Loadsa
Looks like you have got a big seller behind the scenes, keep an eye on the after hour trades.

Janus - 16 Nov 2005 19:22 - 262 of 316

More buys than sells ! I suggest you look at the sales showing up after hours.

jj50 - 16 Nov 2005 22:06 - 263 of 316

Unfortunately, driver and Janus are right. For anyone without active level,
Buys total - 8,148,770 and Sales total - 15,223,654 including sales of 3 million, 1.875 million and 1 million after hours.

I am still in this one but not by choice.

Janus - 17 Nov 2005 16:17 - 264 of 316

From this morning's comment on HCEG from investment house Insinger de Beaufort.

"Below 15p we may be tempted to consider buying the shares given the current state of affairs."

loadsadosh - 18 Nov 2005 09:27 - 265 of 316

Well people so far so good, have managed to recoup about 25% of the total loss on original punt by investing new cash at an sp of 19.34 still holding and watching @ 24.75. how do you all think the picture will look on monday? should I jump off today or wait.

Loadsa

optomistic - 18 Nov 2005 10:09 - 266 of 316

You have done very well loadsa, but do you think they are going to continue the climb away from the bottom? difficult one!
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