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.

Interim Report For the six months ended 31 August 2003

http://www.uk-wire.com/cgi-bin/articles/200311281228076251S.html

Well done Janus, a fantastic mid term report.

Thanks for bringining it to our attention.

GF.

Now Healthcare Enterprise acquires shrewd fans

Published: 08:05 Thr 4 Dec 2003
By Algernon Craig Hall, Secret Buying Correspondent

Email to a friend

Property tycoons Nigel Wray and Nick Leslau have bought into healthcare firm Healthcare Enterprise Group.

Through Prestbury Investment Holdings, Wray and Leslau have picked up 149 million shares which takes their holding to 207 million or 7.6% of the 40.5 million group.


The company in its present form was created in March when a healthcare investment and advisory firm was reversed into a former internet company Myval bringing with it a diversified portfolio of equity investments in the sector.


Healthcare Enterprise (HTN) has been bulking up through acquisition since.


Last month the group completed the 11.9 million acquisition of three companies that supply occupational healthcare and first aid products.


The acquisitions are the company's first bite at consolidating what it views as a fragmented healthcare services market in the UK.


The enlargement of the group is also meant to establish a cash generative, base from which it can further expand, exploiting the core advisory business's international development resources.


Sounds interesting, but it is still early days. This makes Wray's and Leslau's recent purchase look an especially interesting endorsement of Healthcare Enterprise's prospects.


The market has already sat up and taken notice of the company since the reverse takeover sending the shares up from a low of 0.88p in June to today's close of 1.485p, down 0.01p on the day.


cheers GF.

GF,
there seems to be some big sells this morning. Do you think that its just one or two institutions geting out or is something about to happen that we dont know about yet.
Graeme.

Looks like institutional selling graeme. By the way NicK Leslau is a big fan of this stock and gave a very Bullish commentary on T1ps.con on the stock. Micheal walters is aswell.

Watch out for contract news very soon.

cheers GF.

High volumes and tight spreads day in and day out.

I'm confused over this as it never seems to move either way!

Seems like a potentially good speculative investment, well supported, plenty of good things said about it, well known investors in on it.

Don't know what the business end is like though, anyone care to summarise the bad and good points please?

Up 7% so far today, nice to see it moving in the right direction

Up again this morning and the warrants are up too.

Weird little share this!

You'll hurt it's feelings!

I like the rise in the warrants, I don't really have any experience with warrants or how their performance can affect the share price but if people are willing to pay over a penny at this early stage it's looking good. Of all my holdings I'm most confident with this one, for long term anyway.

Second highest gainer on the markets today. Perhaps theres news about in the city about the contact that was due before xmas.

Cheers GF.

Hope this is the start of the deals promised before Christmas.


LONDON (AFX) - Healthcare Enterprise Group PLC ("HCEG") said it has sold
its entire interests in five private healthcare/biotechnology companies to The
Empire Group Fund, LP, a Delaware chartered limited partnership.
The Empire Group Fund is managed by Empire Asset Management, LLC, an
Orlando-based advisory firm that works with small enterprises to develop their
business and marketing plans and strategies, attract investment capital, and
structure exit possibilities, including public listings in the US.
Executive chairman Stuart Bruck said the disposals represent a
rationalisation step for HCEG as it concentrates on plans to develop a
substantial healthcare services business focusing on the wholesale and consumer
markets of the UK, Continental Europe and the US.
HCEG said it has sold the companies for a 5-year loan note secured by the
interests being sold, principal amount of 2.65 mln usd, bearing interest at 5
pct per annum; 20 pct of the realised increase of each of the portfolio
interests above their base amounts; and a 20 pct limited partnership interest in
the Fund.
The loan note also provides for acceleration of all or a portion of the
repayment obligation in the event of a realisation of the underlying interests
into cash or marketable securities, depending upon the amount so realised.
HCEG said it intends to apply the proceeds from the loan note when it is
repaid for general working capital and business development purposes, and
intends to retain the limited partnership in the Fund.
The interests being disposed of are minority equity interests, equity
related securities, and the right to receive certain deferred advisory fees and
fees dependent upon fundraisings and/or certain business development activities
in the five underlying private healthcare/biotechnology companies.
newsdesk@afxnews.com
slm/

Sounds good news.....should keep rising...(famous last words!)

HCEG also mentioned in the Daily Express share whisper column today. Mentioned hopes for NHS approval for Ebiox disinfectant over the next few weeks and that Mr.Wray holds 8%.

HCEG was mentioned as a buy in City Equities online article today.

Best Wishes,

Sue.

Cheers SUE. Its well worth following.

cheers GF.

More good news.


Healthcare Enterprise Group PLC
07 January 2004



Healthcare Enterprise Group PLC

Acquisition of US Healthcare Advisory Firm and Related Interest


Healthcare Enterprise Group PLC ('HCEG') has today acquired Medical Development
Specialists, Inc. ('MDS'), a California-based healthcare advisory company, and
has also acquired from Philip Dalton, Chief Executive Officer of MDS, a 50%
interest in Strategic Creative Solutions, LLC ('SCS'), a healthcare marketing
and advertising firm (collectively, the 'Acquisitions').


MDS is a provider of planning, policy, and advisory services to health systems,
hospitals, health plans, businesses, and government. Through its relationship
with SCS, MDS also provides marketing and advertising services to these
organisations. Although MDS and SCS were formed in early 2003, they incorporate
substantial expertise from broadly recognised senior healthcare consultants.
The principal purpose of the Acquisitions is to provide HCEG with a proven
platform from which to provide strategic and commercial healthcare advisory
services.


For the ten-month period ended 31 October, 2003, MDS and SCS generated $319,419
and $327,330, respectively, in gross revenues and $51,607 and $100,914,
respectively, in profits.


The acquisition of MDS is structured as a merger of MDS with and into a
wholly-owned subsidiary of HCEG formed especially for the purposes of this
transaction. The initial consideration for the Acquisitions comprises the issue
of 20,478,374 ordinary shares to the MDS shareholders. At the current HCEG
share price as at close of business on 6 January 2004 of 1.69p this equates to
an initial value of 346,085.


HCEG has also agreed to pay further contingent consideration by issuing in
installments up to the lesser of: (i) 100 million shares; or (ii) shares with a
value of $6 million by reference to the relevant market price of HCEG's shares
(and this monetary cap also applies to any shares issued to satisfy any
liability of HCEG under a tax gross up) depending upon the accomplishment of
certain financial milestones of MDS over a three year period.


In addition, Mr. Dalton, the principal shareholder and operator of MDS, will
remain with the business as an employee and will be granted options over 40
million ordinary shares 20 million of which will vest on grant and the balance
over the three-year period.


Stuart Bruck, Executive Chairman, stated:

'MDS provides HCEG with the required position in the market to build its
international healthcare advisory platform that will focus on medical products
and services.'

'Philip Dalton, the founder of MDS who brings with him 25 years of successful
commercial healthcare advisory and management expertise to our company, will
report to Michael Low, the Chief Executive of our Advisory and Management
Services business, and spearhead the effort of growing our advisory service
business in the US, UK, and Germany.'

'We believe that the acquisition of MDS, under the direction of Philip Dalton
and our management team, should be accretive to the value of HCEG.'


HCEG is an international healthcare services company focused on occupational
healthcare, private healthcare services, and distribution of medical devices.



7 January 2004

All this good news isnt doing much for the share price.

Re. The recent disposal, which looks OK to me.

HCEG have sold certain interest to The Empire Fund LP (The Fund)
for a 5 year loan note of $2.65 @ 5% per annum.

If The Fund sells the interests during the next 5 years HCEG will receive $2.65 million
plus 5% interest up to the sale date.

If they sell the interests at a profit HCEG will receive 20% of the profit.

As a partner in the Fund HCEG will receive 20% of any profit the Fund makes on all its
Dealings.

Of course if the Fund were to fold HCEG gets nothing.

Had this piece e- mailed to me tonight.

Shrewd Tip: A healthy start to the year

Published: 14:30 Wed 7 Jan 2004
By Algernon Craig Hall, Secret Buying Correspondent

Email to a friend

Another day brings another deal for shrewd investor favourite Healthcare Enterprise.

The company is rapidly forming itself into two distinct but complimentary divisions: an occupational healthcare products and distribution business and a US based consultation and investment business.


Healthcare (HTN) aims to consolidate the fragmented occupational healthcare market and wants to use the distribution channels it is developing to sell the products produced by its consultancy clients and the companies in which it invests.


Executive chairman Stuart Bruck told Citywire: 'We're very focused on achieving high cash flow and this is going to be a real cashflow growth company.'


The strategy has already attracted three noteworthy shrewd fans.


Property tycoons Nigel Wray and Nick Leslau hold a 7.6% stake. AAA-rated manger Michael Barnard's top performing Marlborough UK Equity Growth unit trust holds 85 million shares or 3.1% of the 46 million company. Finally Mark Horrocks' Intrinsic Value investment trust, which enjoyed excellent performance in 2003, holds 65.5 million shares to which he last added 22 million to mid way through December.


Yesterday the young company announced it was shedding five non-core investments to focus on its 10 remaining stakes - including a holding in a company called Ebiox, which has developed a detergent to clean away the hospital super-bug.


Today Healthcare Enterprises has snapped up California-based healthcare advisory firm Medical Development Specialists (MDS) and 50% of its sister firm, Strategic Creative Solutions, which specialises in healthcare marketing and advertising.


Simon Like, Barnard's right hand man, told Citywire: 'From what I can make out this is good news all round… in a sector ripe for consolidation.'


Key to today's deal is the man who set MDS up in early 2003, Philip Dalton. Healthcare reckons new consultancy clients and investment opportunities will come flooding in thanks to his bulging Rolodex.


Dalton has been granted 20 million share options, exercisable below the current share price of 1.69p and he will be entitled to 20 million more if he stays on for the next three years. In total the options are is equivalent to 1.5% of the shares in issue before the acquisition.

Another important consideration for Healthcare is that MDS gives it a depth of knowledge of the US market and contacts with potential distributors which it previously did not have.


Healthcare is issuing 20.5 million new shares to make the acquisition, which at yesterday's closing price of 1.69p is equivalent to 350,000. In addition Healthcare will fork out the lesser of US$6 million (3.3 million) or 100 million shares on the condition that MDS reaches certain undisclosed profitability targets over the next three years.


Citywire Verdict:


Healthcare has begun with a bang in what is expected to be a very active year in terms of news flow.


There are hopes that this month will bring news on the regulatory progress for Ebiox's detergents. There could also be news on its disposable endoscopes investment and there may be new investments on the cards.


Healthcare's ambitious plans to consolidate the fragmented international occupational healthcare sector and developments from its investment arm are likely to mean newsflow remains strong in 2004.


At this stage in the company's development news looks more likely to power the shares' performance than hard financial data.


Healthcare is a speculative and risky situation and subject to the potential pitfall that early stage, expansive, would-be growth companies frequently disappear into.


However, its prospects are exciting and its backers are impressive.


For punters on the look out for some New Year spice Citywire recommends Healthcare as a speculative buy.

cheers GF.

Large volume today 51 million at the last count. Unable to tell what are sells and what are buys. Share price rising though and the warrants going up,so looks good news.