https://www.stockhouse.com/news/press-releases/2016/03/07/revenues-merger-update-southern-home-medical-inc...SHOM DD..
On Monday, 03/07/2015, the company announced that a planned MERGER would close within the next 30 days if not sooner.
The CEO stated the following: “This should be considered a significant merger transaction. When I say significant, I'm saying three things. One, that it will create exponential value & growth for the company. Two, it's in the best interest of our shareholders and three, there's no egos involved in what role I have, if any, in order to allow the overall business to move to the next level."
Exponential value and growth combined with the willingness of the CEO to take a lesser role suggests something far greater in the works than what exists today.
The company is clean and attractive for the following reasons:
Outstanding Shares: 786,509,863 (Unchanged since September 2015)
Float: 462,417,400
Revenue: Over $1,1000,000 in annual sales for full year 2015
Debt: Zero toxic debt that you’d normally find with other penny plays. No debt of any type other than what is required as part of daily operations .
SHOM currently operates two companies:
ApneaRX -
https://apnearx.net/ , a medical equipment company and
Encore Medical Staffing -
https://encoremedicalstaffing.com/ , a nurse staffing agency.
The company has 14 company and franchise locations based on the link below:
https://encoremedicalstaffing.com/locations/ What is important to understand is that SHOM is the Franchisor for this brand. They benefit from royalties on every new location that is opened.
The company revenue looks to be a combination of three things:
ApneaRX medical equipment revenue, Encore company revenue and Encore franchise royalties.
And now they are looking to expand with the addition of another brand or brands per the most recent two press releases below:
December 16, 2015
https://finance.yahoo.com/news/southern-home-medical-aggressively-pursing-140000020.html March 07, 2016
https://finance.yahoo.com/news/revenues-merger-southern-home-medical-153000712.html So as of today, we are 29 days or less out from a closing announcement that could take this company to a much higher stock value at a multiple much greater than the current trading price.
Pre Merger Analysis:
Outstanding Shares: 786,509,863
Revenue: $1,140,504
After Tax Profits: $60,983
Apply the current S&P P/S and P/E to these numbers as a benchmark and you get the following:
.0026 (P/S) & .0017 (P/E) respectively and that's BEFORE the merger.
Just to keep it simple, average those two (.00215) and we are still trading well below the pre merger value. Whatever the merger brings to the table will only enhance the potential growth in stock value.
We don't know what company that they're merging with, but SHOM is a debt free, very clean company that has traded thinly at every level so far indicating a huge number of shares in the float locked in for the ride. A merger of any significance sends this one to pennyland IMHO. If it's a preferred share transaction, you're talking potentially nickel or dime. GLTA
DD Provided by Unclefester posted on I hub SHOM Board