The
AMEX Update is back with a STRONG BUY recommendation on Lifestream
Technologies, Inc. (AMEX:
KFL). Lifestream Technologies (KFL),
the leading manufacturer of smart card-enabled health care diagnostic
devices, announces expected growth to exceed 150%; management forecasts
revenue exceeding $10 million for calendar 2002.
Potential Earnings
Lifestream (KFL)
has announced that CVS Corporation (NYSE: CVS) has agreed to distribute
the Lifestream
Personal Cholesterol Monitor (the only one of its kind) at its retail
locations nationwide. CVS ranks as the largest drug store chain in the
country in terms of store count with retail locations at over 4,100
sites nationwide. For this reason our chief analyst has upgraded KFL
to a STRONG BUY recommendation.
What does that mean
in potential earnings for KFL? Over 105 million Americans are estimated
to have high cholesterol (source: NCEP). Over 8 million new blood pressure
monitoring devices are sold every year, with consumer cholesterol market
sales estimated at 10 to $12.9 billion in monitoring devices alone.
The NIH (National Institutes of Health) expects that as many as 101
million Americans require either drug therapy or therapeutic lifestyle
changes to manage their cholesterol levels. If only 2% of consumers
were to purchase the Lifestream monitoring device, sales would eclipse
$2 billion annually.
Premium
Health care Product
The Lifestream Cholesterol
Monitor offers consumers a fast, easy and accurate way to monitor their
cholesterol levels in the convenience of their own home, unlike other
diagnostic devices that require a hospital or doctor's visit. Equipped
with an embedded smart card reader, the device allows users to save
past results and share them with their doctors and pharmacists. The
Lifestream Cholesterol Monitor was given marketing approval by the FDA
in August 2000 (Alberta
Heritage Foundation For Medical Research) and launched in January
2002 through QVC television and high-end consumer specialty stores,
catalogs and websites including QuickMedical.com
and DrugStore.com,
Since that time, major department store retailers and drug store chains
such as Dillard's,
Bealls,
and Albertson's (Sav-on and Osco
Drugs) have all begun retailing the device. The broad consumer rollout
is targeted at the more than 100-million Americans with elevated cholesterol
levels.
Lifestream Technologies (KFL)
presently has its cholesterol monitoring devices (using exclusively
licensed, patented photo-optic sensor technology) in over 7000 consumer
retail outlets such as CVS
Drug Stores, Eckerd Drugs, Sharper
Image, Macy’s,
and many others
nationwide. By March of this year, Lifestream plans to be in an estimated
15,000 outlets. Lifestream has been profiled on CNN, Good Morning America
and Parade Magazine, and is planning a new media tour for late winter,
early spring, with visits to TIME, USA Today, CNN and others. According
to CEO Christopher Maus, Lifestream is also implementing a manufacturing
cost-reduction program to maximize margins across its entire product
line.
Investor
Conclusion
Conservative projections place $40 million in annual sales for the company
by next year and 15 to $20 million this year. Actual sales for the company
could be much higher. A price target of $15 by year's end for KFL is
easily justifiable, and assuming just a 1% market share ($115 million),
a two-year target of $35 share is certainly on the horizon.
- Get more information
on Lifestream technologies from MSN Money - click
here
- See what they're
saying about KFL on the message board at Raging Bull - click
here
- Read the latest
news about Lifestream Technologies on Bloomberg.com - click
here
- Read the latest
news about Lifestream Technologies on Yahoo.com - click
here
- Computer-generated
analysis, Trenspotter rates KFL a BUY at Barchart.com
- click here
- "500,000
Americans die from heart attacks every year" - E Street Journal
- click
here
- Click
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OTC Bulletin (OTCB)
publishes reports providing information on selected companies that OTCB
believes have investment potential. Subscriptions are $499.00 per year.
Not a solicitation to purchase subscription. Call for free trial. OTCB
is not a registered investment advisor or broker-dealer. This report
is provided as an information service only, and the statements and opinions
in this report should not be construed as an offer or solicitation to
buy or sell any security. OTCB accepts no liability for any loss arising
from an investor’s reliance on or use of this report. An investment
in KFL is considered to be highly speculative. OTCB’s analyst is
contracted to receive $11,000 as a research fee. Subsequently, OTCB’s
analyst may from time to time buy or sell shares of KFL stock in the
open market. This report contains forward-looking statements, which
involve risks, and uncertainties that may cause actual results to differ
materially from those set forth in the forward-looking statements. For
further details concerning these risks and uncertainties, see the SEC
filings of KFL including the company’s most recent annual and quarterly
reports. Copyright © 2002 OTCB. All rights reserved.
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