Less than Two Years Ago, an FDA Rule Change Gave a Stunning
Opportunity to this Unknown Medical Technology Company, and…
Now It's Pay-Me Time!
| FDA Responds to Vioxx Disaster by Requiring Cardiac Impact Trials for Virtually Every Drug in Clinical Trials | |
| U.S. Market Potential For My #1 Medical Services Stock Quadruples Overnight! |
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| International Health Agencies Follow FDA Lead! | |
| World Market Quintuples Overnight! | |
| Big Pharma Scrambles to Get Cardiac Data in Time to File for Drug Approvals! |
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| Huge Swing to Outsourced Cardiac Data Analysis Underway! |
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| One Company Has More Than 50% of the Market! | |
| Just Beat Expectations and Raised Guidance, Yet Stock Remains Dirt-Cheap! |
My latest recommendation should double or more in
2008…triple by the end of 2009…
and then go on to build you and Senator Feinstein's husband
a life-changing fortune…
but only if you're quick enough to get positioned now!
(And I'll name the stock below!)
Fellow Investor,
You've read sales pages like this before, trying to "tease" you into subscribing to an investment newsletter by telling you the story, but holding back the name of the stock until you break out your credit card.
I'm not going to do that. If you will do me the favor of reading every vital word of this report, so I know that you understand the stock you are about to buy, I will give you the stock name and symbol at the end. No tricks, no gimmicks–that is not my style.
You'll want to listen to what I have to say, because I have the #1 portfolio for the last 12 months, according to the independent Hulbert Financial Digest. Sure, my publisher thinks I'm nuts to just give you my #1 medical services recommendation for 2008, but here's the real shocker: I am writing this to you myself. No copywriters, no "you can't say that" editors, no lawyers. Just from me straight to you, to convey the complete story about what may become the most important investment of your life.
Ready?
The Best Medical Service
Investment In The World
Imagine your father, aging but in pretty decent health, feeling more and more arthritis pain in his hands as time goes by. Driving is getting harder, golf is getting harder, just plain daily living is turning into a painful process. You hear about a great new pain reliever, and he checks with his doctor. Looks good to the doc, so your dad goes on this new medication, and…Wow! Terrific pain relief, no stomach upset, the spring is back in his step and the twinkle in his eye…
Until he has a heart attack in his sleep a few months later, and never wakes up. It turns out that deadly heart attacks are a side effect of the new pain medication you mentioned to him, Vioxx, but who knew?
Through the 1980s and 1990s, the FDA required that about 25% of all drugs up for approval study their impact on the human heart. Vioxx was for pain, not for anything to do with the heart. It was never rigorously tested for cardiac impact. But it turns out that many drugs have an unexpected impact on the patient's heart, so the FDA now insists that virtually every drug in clinical trials show that it does not have a negative impact on heart function. That new requirement quadrupled the number of drug approvals that needed cardiac safety testing.
There was a big private meeting in Italy to consider the issue, and they would not let me attend. But I am a professional security analyst, working on behalf of my subscribers, so I didn't let it rest there. Shortly after the meeting, I discovered there were notes and a report written, free to attendees. I asked if I could buy a copy, and the nice man at the other end of the line said yes, but they would be expensive - $50 plus shipping. Choking back my glee, I read him my credit card numbers. When the report arrived, I read through it twice and realized one company had just been given the keys to the kingdom to profit from the worldwide adoption of cardiac impact testing.
You see, many biotech and even big pharmaceutical companies are working on drugs that have nothing to do with heart disease, so they don't have the specialists on staff to set up and run this part of their clinical trials. So they outsource it to a cardiac clinical research organization. And one company had been winning most of this business–they still have more than a 50% market share–building up customer trust and loyalty one clinical trial at a time.
When the Internet came along, they added features to collect 12-lead ECG data from either outpatient clinics or mobile devices ("Holter monitors"), transmit the data back to company headquarters, analyze it, collect and collate all the data from all the clinical sites into one comprehensive report, and then produce the report in an FDA-acceptable format that can plug right in to the rest of a drug company's clinical filing.
And they do it cheaper and better than the drug or biotech company could do it themselves.
Pretty impressive.
Here's what a traditional cardiac impact trial looks like, using a decentralized ECG system. Each clinical trial site has to perform a lot of steps, including reading the ECG on site and often sending paper documents back and forth to whoever is collating the data. Obviously, this loads a lot of work on the sponsor of the study, and creates numerous opportunities for the drug company or cardiac contract research organization (CRO) to make mistakes.
Enter the Internet. The contract research organization can now take over many more tasks, leaving the clinical trial site to simply perform the 12-lead ECG and respond to any questions. The ECG results are transmitted over the Internet to a central location, where highly trained experts read them. Because Electronic Data Capture (EDC) is in use, the whole process of transferring data from paper forms and then checking for errors is eliminated.
As you can imagine, the process is simpler and highly automated, lowering costs while increasing quality.
If you understand this, you will know
more about the Cardiac CRO opportunity
than 99.9% of all other investors
Of course, there was a great flurry of interest and debate among the companies with clinical trials underway to decide what to do and when to do it. Some of them were wise enough to place orders for a trial, just to hold their place in line. But instead of the traditional six month delay between booking the order and starting the trial, the whole contract research industry saw that timeline stretch out to nine months…a year…15 months…
Even though quarterly orders were growing and the backlogs of trials to be performed were skyrocketing, each quarter's actual revenue growth and earnings disappointed Wall Street for a year…and you know what Wall Street does when a company misses the consensus estimates. The stocks were pounded.
So How Do You Invest In Cardiac
CRO For Life-Changing Profits?
You follow the smart money. Travel with me to the San Francisco Financial District, my home away from home for more years than I like to count. Specifically, we are headed for the fourth floor of 909 Montgomery Street. Physically, it's a few blocks away from the heart of the San Francisco Financial District. Emotionally and intellectually, it's miles away, because this is the home of Blum Capital Partners, formerly Richard C. Blum & Associates. They don't "pick stocks" or "make bets" or "play the market." Here, let Dick Blum tell you what they do with their $2.8 billion under management:
"The firm only makes new investments in a small number of the companies it monitors each year. We expect to build a substantial position in each business, either through the acquisition of Strategic Blocks of common shares in the public market or in a privately negotiated transaction.
Blum Capital takes a substantial position in order to establish a productive 'seat at the table.' We generally strive to be one of the largest shareholders and, on a friendly basis, seek Board representation, if we feel that it will enhance our ability to create value.
Our team of investment professionals monitors hundreds of companies in the publicly held small- and mid-cap markets and typically conducts on-site visits with the management teams of over 100 companies each year.
We continuously develop and revise a select list of companies which match our criteria: fundamentally good businesses that we believe are undervalued and, in some cases, in which our value-added strategies can be implemented and realized in a two to five year time period."
In other words, they buy businesses, not stocks, and they focus on investing in a very few out of the hundreds of opportunities they are tracking. They look for value, yet are not afraid to buy growth. Blum Capital owns 7,450,969 shares of this cardiac CRO, 12.7% of the whole company. John Park, a partner of Blum Capital, now sits on the Board of Directors. Dick Blum, of course, is Senator Dianne Feinstein's husband. He is plugged in, to say the least.
Now travel with me several blocks down Montgomery Street, turn left at Market Street and go to the high-rise at 388 Market. Ride the elevator up to the 17th floor to RS Investments, the former Robertson Stephens Investment Management company. Long known as growth stock managers who pay attention to valuations, RS owns 7,356,935 shares of the leading cardiac CRO, 14.7% of the company. That's a little more than even Blum Capital.
A business buyer, a growth stock investor and a value stock investor own, in total, 39.8% of this company. This is a remarkable, unique situation–I can't remember one like it in my 35 years of investing. When I see ownership like this, I know there are life-changing fortunes to be made.
Now Let's See How You Can Turn An Interesting
Technology and an FDA Mandate Into an
Explosive Stock Opportunity–My #1 Medical
Services Recommendation for 2008
(And Why You Need To Buy Before March 22nd)
Philadelphia may not be the first place you think of as a high tech center, but it has a long history in health care, and is only about 60 miles from northern New Jersey, the world center for pharmaceutical research. The company Dick Blum and Chuck Royce are in started modestly in Philadelphia in 1977, and grew steadily to $28 million in revenues in 2000 and 2001. Then they introduced their Internet-based centralized cardiac impact CRO service, and revenues exploded: $41.5 million in 2002, $66.8 million in 2003 and $109.4 million in 2004. The stock got up to $29.80 in July 2004.
But then the rumors began that the FDA was going to change the ground rules. The pharmaceutical and biotech companies decided to postpone the cardiac impact portion of their clinical trials, or wait to see if they would even be required to perform those tests. The company's revenues fell to $86.8 million in 2005–the second-highest in their history, but still down–and stayed flat at $86.4 million in 2006. But in 2006 they also booked $121 million in new contracts, and looked forward to a dramatic recovery in 2007 as those contracts turned into revenues.
Unfortunately, the time between booking a contract and starting the study s-t-r-e-c-h-e-d out to an unprecedented delay, and sales growth really didn't start happening until the fourth quarter. In 2007 they did $98.7 million in sales, showing some growth. The December quarter had record revenues, up a full 45% from the prior year. But the real action was out of the headlines, as they booked a record $138.6 million for the year, and finished 2007 with a record backlog of $140.2 million in contracts.
Imagine if you and I ran this company–what would we focus on? Two things. Now that the floodgates have opened, we would be driving sales much higher this year, as all those drugs in clinical trials have to be slotted in for cardiac safety testing, or a whole drug development program might be delayed.
The second thing we would focus on is execution. Convert that backlog to as much revenue as possible this year. The company I have found is doing just that and…
…That Is The Stock I Want You To Buy Today!
Look At My Record To See Why You Should Listen to Me…
And Get Ready To Take Action!
The first baby boomers turned 60 in 2006, and the number hitting that magic number each year won't peak until 2017. That means the demand for more and better health care, more and better drugs and safer pharmaceutical and biotech breakthroughs will grow and grow…whether there's a recession or a recovery…whether the dollar falls or rises…whether the stock market goes up or down.
That's why Wall Street insiders, top venture capitalists, elite investors like Bill Gates, Richard Blum and Warren Buffet are putting billions into health care investments right now. According to Dow Jones' VentureSource:
"Venture firms' pursuit of health-care deals intensified from a rush to a stampede last year, with no letup in sight for 2008. Venture capitalists sank a record $9.97 billion into U.S. health-care companies in 2007, eclipsing the previous high of $9.47 billion in 2000. The surge has come as firms strive to get behind the most promising new treatments for cancer, heart disease and other increasingly common problems. With a number of firms closing sizable funds recently, and one raising the largest health-care fund ever at $1.25 billion, finding money for a deal is no struggle."
Wow! If the professionals believe health care is going to be that big, and they are backing their beliefs with billions in capital funding every year, every intelligent investor must own some of these stocks. But instead of risking everything on one drug approval or one clinical trial, you need an investment that benefits no matter which drugs get approved, how fast or slow the FDA moves, and what Medicare does. You need to win just based on increased health care spending. It's as simple as that.
I Want You To Start With
eResearch Symbol: ERES
Meet Michael Murphy
Michael is the editor of New World Investor, an investment advisory service with the portfolio recently rated #1 for last 12 months performance by the independent Hulbert Financial Digest. He is one of the nation's leading experts in exciting technology industries. He began his career in the industry's infancy, first as COBOL programmer and mainframe systems analyst, then as the technology stock analyst for American Express in 1970, and later as the CEO of two software companies. For the last 25 years Murphy has worked as an independent tech investment writer, where he has shared his stock recommendations and unique industry analysis with hundreds of thousands of individual investors. His former newsletter, Technology Investing, was rated America's top investment newsletter in 1999 by an independent industry watchdog. In New World Investor, Murphy helps you to realize your financial goals by investing in the profitable opportunities from new technology MegaShifts. Murphy is also a featured investment expert in the media, often quoted in The Wall Street Journal, Barron's and Money, and makes frequent appearances on CNBC and CNNfn. He lives in California, where he raises children and rare breed animals on his permaculture farm and drives an electric pick-up truck, a memento from his successful world record runs for electric cars at the Bonneville Salt Flats. |
There, as promised, is the name and stock symbol of my next big winner. Their dominant market position, high order rates, solid backlog of contracts and recently raised earnings guidance are going to attract Wall Street coverage, and then a return of the institutional investors. I think ERES can give you your first double by the end of 2008…a triple by the end of 2009…followed by mind-blowing profits as ERES management takes the company into more countries around the world…adds more CRO services…acquires some of the latecomers with good ideas but weak finances…or sells itself to any one of the hundreds of health care companies, venture funds, hedge funds and investment banks clamoring to get more money into health care investments as the baby boomers age.
Best of all, ERES is selling today for well under $16 a share! You can buy hundreds of shares at that ridiculously low price. No, there are not hundreds of millions of shares outstanding, like some cheapo penny stock. ERES has only about 50 million shares today, so it is still a small cap stock…little known (only four Wall Street analysts; no major firms)…undiscovered…unloved. But not for long!
You see, every new contract eResearch signs adds about $1.1 million to the backlog. Now that the delay between contract signing and commencement of the clinical trial has stabilized, revenues will follow orders up–up–up–as far as the eye can see. Here's my forecast of what could happen:
If you get a chance to buy into reliable revenue growth like this before it happens, you will make more money than you ever thought possible .
And that's just where ERES is positioned today. In fact, they may do so well this quarter that they will have to pre-announce results higher than their guidance! If that happens, it would probably come during the last week of the quarter, starting March 24th. I want you to buy ERES before a possible pre-announcement, and certainly before they announce March quarter earnings. That means you MUST get on board NOW!
Now you have to make a crucial decision…
Are you going to get into this alone, do your own homework, keep an eye on eResearch's progress, financials and prospects, or…
Do you want me to do it at no out-of-pocket cost to you?
Let 100 Shares of ERES Pay The Cost
of Hiring Me To Do The Work For You.
|
7 Stocks Sold in
You're probably thinking: "Sounds great, Mike, but how do I know that you know what you're talking about? Can you really identify emerging communications companies and other cutting-edge technology companies that can make me much wealthier?" I give you two pieces of evidence for your consideration: First, the independent Hulbert Financial Digest has given one of my portfolios the top ranking for the last 12 month returns. This portfolio was up an incredible 187% in the last 12 months. Those aren't my numbers, those are Hulbert's, and he's proud of his record and reputation as a watchdog of the investment advisory industry. Second, let me tell you about the last 7 stocks I've recommended my New World Investor subscribers sell. On average, my subscribers captured a 115% gain in each one. Gilead LEAPs +206% in 18 months@Road +98% in 20 months Holly Corp. +70% in 11 months Burst.com +105% in 9 months Omniture +227% in 9 months Royal Dutch +35% in 13 months Huaneng Power +63% in 22 months So when I tell you that ERES has a good chance to double in the next 6 months, and I back that up with my money-back guarantee if it doesn't, you know I'm standing behind my prediction. Of course, not every recommendation will work out so well as the ones in our recent winning streak. Some of these are development-stage companies, many of them micro-caps, and some not even generating profits yet. That's why you'll want to only play this game with an experienced guide, someone who knows the technology, the people and the risks involved. Someone like me. |
Here's how. As you will see below, a full-year subscription to my New World Investor weekly email investment advisory costs $325. And it's worth every penny! I'm on the phone, on the computer, reading SEC filings or visiting companies every day, weekends included, to make it the best investment advisory in the world. But I feel so strongly that you must buy ERES, here's what I'll do:
Friend, if you can find a better deal and a stronger guarantee than that in the whole investment business, take it.
I want YOU to be the next one sitting on the beach in Maui…setting down your Mai Tai…or at the 19th hole at Augusta…sipping your chardonnay…or in a little sidewalk café in Paris…stirring your espresso…starting up your laptop to drop me an email:
Dear Michael:I just wanted to thank you again for ERES, and the kick in the butt you gave me to buy the stock and subscribe to New World Investor. In fact, my whole family is here and we ALL want to thank you. Sorry this is so short, but we are off to [surf] [play another round] [Giverny to see Monet's garden].
With your subscription to New World Investor, you'll get two fistfuls of goodies:And, of course, cardiac trial outsourcing from eResearch (ERES), which I think will be just the first of many money-doubling recommendations in this hot, hot technology.
Thanks for reading this whole report. You've fulfilled your part of our bargain, and I've fulfilled mine by giving you the ERES name and symbol. Now, if you are ready to go to the next level for $3.83 a week–the cost of a latté at Starbucks–the sophisticated investors already reading New World Investor would welcome you to the club.
Just be certain to move surely and swiftly, before ERES announces the strong March quarter results and before Wall Street catches on to their revenue acceleration. Pay careful attention to the Buy Limit and Target Price listed on the New World Investor website, as I might notify subscribers that I am changing them at any time. Markets move, and we respond.
My Subscribers Are Going To The Bank With ERES! Will You Be One of Them?
This is a time-sensitive situation, because the closer ERES gets to reporting results, the more likely Wall Street and the institutions will jump in. I want you to get a full position while the stock is well under $16 (my exact Buy Limit must be reserved for subscribers, as I'm sure you will understand).
Please Don't Delay, Join New World Investor Right Now!
Yours for MegaProfits in all the MegaShifts,
Michael Murphy
P.S. If Dick Blum, Bill Gates or Warren Buffett invited you to co-invest in a totally overlooked deal where they expected a quick double, followed by life-changing profits, would you do it? That's what I'm inviting you to do, at no charge for the idea and no risk for the weekly follow-up.
P.P.S. Remember, this is the #1 medical services recommendation for 2008 from the #1 investment newsletter portfolio for 2007, as measured by an independent industry watchdog. You need to own this stock–it's as simple as that.