This pitch comes in from Alex Koyfman as an ad for his Penny Stock Millionaire, which has demonstrated a delight with tiny little medical technology stocks — so we’ll warn you up front that there’s every chance that this is a sub-$100 million company that could easily be jolted higher or lower with just a wee modicum of attention.
The last time we looked at one of their stocks, it was Milestone Scientific (MLSS) back in early November… a company aiming to revolutionize the standard injection needle — and it has risen a good 20-30% or so since they started teasing that one (I don’t know whether they reported good news or it was just the new investor attention driving them higher, I haven’t checked on the details… there was quite a bit of skepticism about that one among our readers at the time).
And this one, like Milestone Scientific, is sort of a healthcare stock… but it’s not one that requires lots of FDA clinical trials or deep scientific knowledge to understand, it’s really a technology and RFID tracking stock. Here’s how the teaser pitch gets us excited:
“This Technology Has the Power to Halt ANY Pandemic in its Tracks
“And it’s Not Experimental, Top Secret, or Waiting for FDA Approval
“The Small Tech Company Behind it is Installing it NOW, In Some of the Nation’s Top Hospitals
“And it Could Make YOU a Millionaire in 2015”
And who is it? Let’s check out the details in the tease… they start with a made-up story, similar to the headline stories of some of the returning Ebola doctors. This doctor was at risk of spreading the disease once he started to feel ill while back home in the US, and nearly caused a crisis in his local hospital:
“By the time word spread that a patient with a possible Ebola infection was in the hospital, both Dr. Pollack and the bodily fluids he’d violently expelled had been in direct contact with more than a dozen staff members.
“But this hospital was prepared.
“You see, two months earlier, this trauma center had invested in a unique new technology that would turn an otherwise chaotic hive of contagious disease into an ordered and quickly manageable situation.
“The movement of every patient, every staff member, and every mobile piece of equipment was being tracked by a centralized system.
“Using this system, hospital administrators could tell who had come within a dangerous radius of Dr. Pollack and who, in turn, had come into contact with those individuals.”
And apparently this system, for tracking people and equipment in hospitals, is already being deployed:
“This very system is being installed right now in some of the nation’s best hospitals….
“Thanks to the work done at a small Michigan-based tech company, modern threats like Ebola, MERS, avian flu, pneumonic and bubonic plague, and any other highly communicable, rapidly spreading disease can now, for the first time ever, be contained, isolated, and eradicated with the speed and precision of a microprocessor.
“This company has developed a system that can take the chaos of an overloaded class 1 trauma center and not just track the movement of every object, patient, and staff member in real time… but actually determine when and where physical or near-physical contact took place between anyone working in or admitted to the hospital.
“A technology like this has the power to stop outbreaks before they spill out of the hospital setting….”
So, one assumes, this little Michigan tech company is going to make us all filthy rich… right? What, then, is the company? First we get a few more hints about how the technology works, and why it’s valuable…
“Applying RFID technology in a hospital allows for administrators to analyze, modify, and streamline everything from the way foot traffic is directed to which nurse, technician, or physician gets called up in the event of an emergency — all based on location.
“In situations where seconds can often mean the difference between a patient bleeding out or suffocating and surviving to recover, RFID networks are a godsend….
“There is universal appeal for this type of product in today’s hospitals, and the versatility of its functions is remarkable.Are you getting our free Daily Update
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“These locator badges and tags can be attached to any worker or patient, but they are also made to be fixed to mobile equipment and beds.
“A centralized system keeps track of all of these moving parts, analyzing the inefficiencies and guiding improvements…’
“This company’s suite of products is so extensive that it goes so far as to market special hand-sanitizer dispensers that track who uses them, when, and where.
“Put all these parts together, and the end result is a hospital that functions more smoothly, responds to emergencies faster, creates less waste and overhead, and provides invaluable data in the tracking of contagious diseases.”
And then we get to some more specifics about this secret Michigan tech company — in the form of examples of their customers:
“One example comes from a Maryland-based hospital that recently put my company’s equipment-tracking system to use.
“This hospital reported that after the system was put into place, the time spent per nurse per day in locating equipment immediately dropped more than 90%….
“The program was so successful that this hospital is now moving forward with the company’s patient-tracking system.
“Another case is a major hospital center in the Pacific Northwest.
“Taking advantage of the same equipment and object-tracking network but on an even more extreme level, this hospital saved an estimated $600,000 on the first day of its use — more than the cost of the system.
“How is this instant savings possible? Simple: The system analyzed the number of IV pumps in use at the hospital and determined that there was a surplus of more than 25% — which immediately impacted budgeting for the next order….
“And this is just a small sampling. This company has worked with some of the most recognized hospitals in the nation — and each time, the results were the same.
“Time saved. Overhead decreased. Operations streamlined and optimized.”