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.

Think it could fly in the morning.

GF

read a newspaper article a while back about how effective ebiox's decomtaminant was in a hospital test.

OK - I'm in for a few. This really does look like a 10 bagger !

Asked around relatives working in this area in North of England this morning.VERY VERY positive about the way this company operates.Never looked at this company before but have come straight in this morning to pick up a couple of grands worth. From what I hear we should expect some good news results wise within a year or so that could bring it on to a few more peoples radars.
Cheers gf.
Interesting.

It's got a very narrow spread for an AIM company - only .57% at the moment.
Overall looks good enough for me to take a small punt on.

dclinton
on the gxn thread, you said that HCEG are issuing a billion 1p shares to fund acquisitions - excuse my ignorance but what are the implications? Is that a good or bad thing for the share price, short term, long term etc?

Alot of volume today, I thought it might have gained a little.

jonfish53, me too. mainly buys, but no real moment!?

Dont forget this ones assured of plenty of news flow and at the same time price momentum newsflow. Heres a site that as tipped it..............

Taken from another thread. M Walters site I am told.
[Read more]
Battling The Bugs
21/10/2003

These days, when you go into hospital you could end up with something extremely nasty as a result of the MRSA bug. Now you can invest in a healthcare company which might have some of the answersENDS. Not a member.

But news on here should push it aswell. Cant really expect it to be up today, lets face it what is. The MMs are keeping a lid on everything. See you guys in a weeks time, having a much needed break after 5 years hard slog without one.

Might make the odd post.

GF.

Thought you were pot-holing, not making fences!

Could move up significantly on news next week.

gf.

Bought a few this morning -worth a speculative punt methinks. Is it usual for a small company like this to have such a small spread?

Bourght some this morning,could be an early xmas pressy

Such a tight spread on a 1-2p share is highly unusual - something's afoot methinks.

Dissapointing to see these drop, I think many of us are in these.
Although wasnt very impressed when i saw their website, and given they are scouse based did start to worry a bit!!!!

If anyone takes the time to read the aquisitions rns dated 20/10/03 then you'll see that this lot are a good bet long term.

even if short term they do nick your hubcaps
dyor

What ????
Liverpool the city of culture ,When they pinch the the wheels off your car these days it's left jacked up on books!

Been trying to find their website can you oblige please Pommy.
regards.

More drops today, have we been done?

Here it is

http://www.safa.co.uk/

Safa Ltd was established in 1966 and has since become a leading supplier to UK Occupational Health, where we supply many of the top FTSE listed companies. We also offer a wide range of products to First Aid Distributors and Retail Organisations.



Safa Ltd offers a range of products and services which are second to none, from information bulletins and literature to study days and seminars.



Our flexibility means that we can provide a tailor made package to meet the requirements of your business.



A range of our products are available to order on line. If you do not see what you are looking for then please contact us here at Safa Ltd.


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Safa Ltd is a member of The Safa Group, which incorporates Safa Ltd and Safa Medical. For further information about these companies and their services please use the navigation bar on the left.

Safa Ltd, 59 Hill Street, Liverpool, L8 5SB

Tel: 0151 708 0397 Fax: 0151 708 7211 E-mail: info@safa.co.uk

Well - hopefully he's just gathering up the small fry. Wonder if Safa would like some help with web design?