Bederra Corp.
(Public, PINK:BEDA)
Nothing has had more financial buzz lately than the announcement of the newly re-established “uptick light” , of which the SEC voted on in order to enlist a temporary ban on short selling, and quite frankly, it couldn’t have come at a better time. With the recent collapse of the financial markets leading to our great recession today, short-selling individual investors, and in particular, short-selling market makers have been swimming in gold after the “up-tick rule”, which had been around since the late 1930s was abolished. Now lets backtrack a few decades and look back at its origin. In 1978, the purpose of the uptick rule was described in a standard text “To correct inequities that occurred on Stock Exchanges prior to 1934, the SEC implemented Rule 10a-1 and 10a-2. It was not unusual in those days to discover groups of speculators pooling their capital and selling short for the sole purpose of driving down the stock price of a particular security to a level where the stockholders would panic and unload their fully owned shares.” This, in turn, caused even greater declines in value.
The rule was put in place for one reason only, to generally prohibit short selling of securities except on an uptick. So what was the end result? The rule went into effect in 1938 and once the market graciously bounced back, it was removed when Rule 201 Regulation SHO became effective in 2007, essentially companies had 35 days to cover the short with an imminent buy-in effective immediately. This was quickly found ineffective as market makers began to pool money and borrow stock from each other, quickly learning to cause panic selling from individuals, enabling them to make money on the short, as well as scoop up what was dubbed, “free shares” due to their highly undervalued price per share.
Amidst all of this, we have managed to find a company which directly rings memories of MedClean Technologies (OTC:MCLN), in that it is also listed a top 5 Regsho naked short, awaiting major news and is poised for revenue growth on emerging opportunities in the rapidly worldwide expanding healthcare industry. Taking a page straight out of the history books, those who remember MCLN should keep in mind that its shares jumped multi-hundred percentiles as market makers covered their massive short positions once news broke out on its potential. Are you ready for the ride, again?
So with this whirlwind of events, where does Bederra Corp. fit in? The answer is simple, it is one of the most undervalued, HIGHLY shorted stocks of any kind on the small cap sector with a potential to more than double your investment in the blink of an eye. It is currently undergoing a 50% share float buyback from the company, awaiting acquisition news any day now, and an announcement on another fore-coming acquisition in the preliminary stages (no letter of intent as of yet). What’s more astonishing, is that in the past few days, on average, from 25% to 50% of the average daily volume is listed as short, according to the Regulation SHO statistics. For example, incredibly, on 02/25/10, the daily volume was 108M with more than 20M shares short according to this government source.
Eventually, these shorts will cover their positions and create one of the most explosive short covers the market will see in quite some time. After all, what goes down must eventually go back up, the market makers know this, what’s important is that you find the hidden gem before they decide to unleash this monstrosity. Below you will find research, as well as technical analysis which gives Bederra Corp. (PINK: BEDA) a projected short-term price target of $0.0026. Strategic location, profitable growth, high-growth market, and diversifying revenue streams all play key roles in making this one of the best plays of 2010. Add the fact that the float is only 404M, so 50%*404M*0.1=202,000. That’s right, it would only take roughly $200,000 USD (once the buyback is complete) to purchase the whole float and make the shorts cover in a frenzy, creating a massive eruption in the price per share, as nearly more than 3/4th of the float should be short by now (meaning borrowed shares by market makers). The company jumped immediately to $0.0026 on 25/01/10 with the company’s initial announcement of the buyback plan. Now, a few steps forward, with the company officially confirming it and implementing it the stock drops nearly 250% below that? Little to no dilution, no increase in share authorization, and best of all, no bad news. Nice try market makers, we’re on your tail now.
About Bederra Corp.
Bederra Corporation has been active in Healthcare since 1979 when it began as a finance company specializing in the financing of equipment and other assets to doctors, hospitals and clinics. In late 2007, Bederra went public and switched focus from the financing of assets to the acquisition of assets. It acquired two diagnostic imaging facilities, Diagnos, Inc. and Lumar Imaging, Inc. These facilities provide services such as MRI, CT, Ultrasound, X-Ray, Nuclear Medicine and various cardiac diagnostic services. In addition, Bederra has in place all the necessary insurance plans such as Medicare, Medicaid and Commercial Insurance contracts.
The future of Healthcare is greater control of the patient and patient services. Government and insurance companies are forcing patients into outpatient facilities such as imaging centers, surgery centers, home health care and a variety of other services. Many hospitals have seen this trend and are actively pursuing a planned acquisition of these types of facilities and services.
Companies that have an existing patient referral base such as walk in clinics along with their own diagnostic services will be better able to compete and capture a more profitable percentage of reimbursements from government and insurance plans.
Bederra’s business plan is to actively pursue acquisitions in the above areas that will accomplish the goal of meeting our patient’s needs, by the provision of these services, resulting in increased profitability for the company.
Business Model
Subsidiary Diagnosis, Inc., acquired in December of 2007, provides medical imaging services utilizing state-of-the-art Positron Emission Tomography/Computed Tomography (PET/CT) technology. A PET creates an image (scan) of your body’s biochemical activity, and can detect abnormal cell activity. CT is short for computed tomography, which uses X-rays and a computer to produce an image of a body’s organs, bones and tissues in greater detail compared to standard X-rays. Combined, PET/CT is a new imaging tool that creates a more accurate, detailed picture compared to performing each test separately.Doctors use a PET/CT test to determine the rate at which cancerous cells have spread and to monitor the effectiveness of treatment. According to the American Cancer Society, over one million people are diagnosed with cancer each year, and approximately one out of every two American men and one out of every three American women will have some type of cancer at some point during their lifetime. A number of medical departments are adopting the use of PET/CT technology, including oncology, neurology, cardiology and urology, to aid in the early detection and treatment of cancer. PET/CT is approved by Medicare and covered under all major insurance carriers.
Subsidiary Lumar Diagnostic Imaging, Inc. (“Lumar Imaging”), acquired in March 2008, provides multimodality medical diagnostic imaging services such as MRIs (magnetic resonance imaging), CTs, Ultrasounds and Pain
Management. MRIs help physicians diagnose and monitor treatments for tumors, heart disease (the nation’s leading cause of death), lesions of the liver and other vital organs, as well as many other progressive diseases and injuries. Lumar has received the approval to provide services for all major insurance providers It is also approved by Medicare and Medicaid thus enabling Bederra to better serve the needs of the more than 1.7 million low-income Americans throughout the nation This multi modality facility has room for future growth and plans to provide additional studies such as cardiac imaging and nuclear imaging
Multiple Growth Drivers
Leveraging its market reputation in Houston, Bederra has identified new market opportunities to create a vertically integrated health care company that provides comprehensive health care services to patients, and supplies hospitals with expert staffing and outsourced services. Services under consideration include the following:
Corporate Growth Highlights
- Strategic Location – Bederra’s facilities are adjacent to the world’s largest medical complex, the Texas Medical Center in the city of Houston, where the Company serves a population of over 5 million.
- Profitable Growth – In 2009, Bederra generated revenues of approximately $2.1M and net earnings of $538,444, or approximately $0.01 per share.
- High-Growth Market – Overall, healthcare expenditures are expected to nearly double from approximately $1.7 trillion in 2003 to $3.4 trillion in 2013.
- Diversifying Revenue Streams – The Company plans to create a diversified health care company by acquiring
synergistic businesses that expand its doctor referral network and aid in serving the nation’s health crisis with affordable
and accessible health care products and services.
Experienced Leadership
Technical Chart Analysis
For the sake of attempting to digest realistic evaluations, we have chosen to analyze the 02/24/10 chart on BEDA due to the fact that shorts weren’t running around tagging eachother with borrowed shares.
The chart has a double bottom at $0.0010, and is fully expected to reach $0.0026 once shorts are forced to cover. From a distance, charting experts will quickly point out the highly oversold condition of the stock as it is positioned at the 50 market of the Relative Strength Index (RSI). The momentum is moving upwards, thus establishing a bullish forward looking sentiment from the investment community. The $0.001 (50 DMA) and $0.0014 (20 DMA) will act as strong supports in the coming days, with a quick move to $0.0026 expected, similarly to the move on January 25th, 2010 when the company initially announced a board meeting to discuss the stock buyback plan. The 20 DMA and 50 DMA also had a bullish golden cross, further showcasing the bullish nature. Green volume buys remain larger than the many apparenty red sell bars, thus paving the way for a long-term uptrend. The black line represents the downtrend of the stock, all the way from beginning of September/09 till now, when a reversal is due to take place any day now, and when it does, look out as stock scanners around the world will be flashing the red lights. Full stochastics has reached its bottom of 26.67, comparrable to January/10 when the stock rose multi-hundred percentiles.MACD divergence also remains flatline, representing that it is poised for a huge run once it gets going.
The only thing keeping this stock down now? Naked shorts, and unfortunately for them, their time is up with the new “uptick light”.
Money Flow Index (MFI) is a technical indicator used to show the money going in and out of the stock. Clearly, it is well positioned at the 56 marker, making it neither overbought or oversold. In fact, it simply restates that people are starting to take notice and throw their money towards the stock, giving it the ability to pop at any time as the float dries up.
Report A Short Selling Market Maker Today
Members must submit disclosure events and customer complaints electronically via the Regulatory Filings Application on the FINRA Firm Gateway which can be accessed directly through the web link https://RegFiling.FINRA.org. Any questions, concerns, or entitlement issues regarding form filing applications can be directed to (800) 321-6273.
Disclosure: Long BEDA
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