Last Wednesday at McKesson Corporation’s annual stockholders meeting, the majority of investors voted to strengthen the company’s clawback policy. With the support of proxy advisory firms, the non-binding proposal stated the company’s existing policy possesses too high of a standard to which clawbacks may be applied. So what does this mean exactly? Shareholders agreed that McKesson needs to disclose the use of its clawback policy. For more details, read the full article HERE.
Not only did the Food and Drug Administration grant another three years of protection from generic competitors for the drug Plan B, but the government also permitted its spot on retail shelves. This means the pill will now be available without a prescription. After more than a decade long battle to make it more easily accessible to women who want to prevent pregnancy following unprotected sex, the government even dropped its fight to keep an age restriction on the medication after losing multiple court battles. Plan B will now be available to woman as young as 15 without a prescription. For more information on the drug and the long process it went through to reach this point, click HERE.
We all know that feeling of breaking the water’s surface only to feel an intense sting on our stomach moments later. Then, when we emerge from the water, we see the huge red mark on our bellies left from the impact. But could belly flops cause more harm than a little redness and a slight sting? Surprisingly, the answer is yes. The most common injuries deal with concussions or intense bruising of the skin. However, while it is less common, it is possible to experience abdominal trauma and it can affect other internal organs, too. To read about other consequences of belly flopping, check out the full article HERE.
While malignant mesothelioma is rare, it has limited therapeutic options. Even the best advances in treatment leave the median survival time period at about 12 months from diagnosis. However, increased knowledge and understanding of the molecular basis involved in cancer progression should aid in the discovery of biomarkers for earlier diagnosis. These biomarkers even have the potential to help scientists create more effective therapeutic tools for the disease. To read more about what the researchers from the New York University Medical Center found, click HERE.
Zenect Healthcare News Issue 041 – The Future of Medical Diagnostics is Already Here
Hot Penny Stocks – Fonar Corporation (FONR)
Bob Harper, Managing Editor, The Zenect Health Report
On The Radar Report
Nineteen-seventy was a monumental year for diagnostic science with the discovery of the technology that makes MRI machines possible. The inventors knew they had something big on their hands. And so did some medical entrepreneurs who jumped at the chance to design and manufacture these world changing devices. The first successful human image was performed in mid-1977, and today’s company, Fonar Corporation (FONR) was incorporated the very next year.
QUICK FACTS
Ticker: FONR
Industry: Medical Appliances & Equipment
Recent Price: $6.31
Market Cap: $38.5 m
Shares Outstanding: 6.1 m
Average Volume: 15,104
Dividend Yield: N/A
Website: http://www.fonar.com/
COMPANY DESCRIPTION
Fonar Corporation is the first and oldest MR manufacturer in the world. Throughout the subsequent decades they have developed a number of industry breakthroughs. Examples include the first multi-angle oblique scanners and first mobile MRIs.
In 1997, the company formed a subsidiary, Health Management Corporation of America (HMCA). This new segment operated 11 diagnostic imaging centers and 6 multi-specialty practices, primarily in New York and Florida.
FINANCIALS
FONR’s most recent quarterly numbers were released on May 15, 2013.
The company reported revenue of $11.6 million in the quarter. Up from last year’s third quarter revenue of $9.5 million. This is an increase of 22.3%. Fonar Corporation also reported a net income of approximately $1.6 million… a year-over-year increase from a net income of $1.55 million.
As of March 31, 2013, the company reported $9.2 million in cash and $15.9 million in long-term debt.
KEY METRICS ANALYSIS
Trailing P/E: 7.6 x
Price / Sales: 0.9 x
Return on Assets: 8.3 %
Insider ownership: 2.1 %
Short Ratio: 3.8 x
Current Ratio: 1.6 x
Total Debt to Equity: 45.5
RECENT EVENTS
On March 5 the company acquired a majority interest in Health Diagnostic Management (HDM). This dramatically expanded the footprint of their patient facing diagnostic services.
To put it into perspective, HMCA performed 45,000 scans in 2012. With the combination of HDM’s 2012 numbers, this jumps up to 113,000 scans. The acquisition resulted in 14 new centers and dramatically expanded this segment’s footprint.
In addition, the company is currently developing the OR-360º™. This room-size MRI will enable surgeons, assistants and equipment to utilize the unparalleled detail of MRI guidance without obstruction from the scanner’s magnet.
MANAGEMENT TEAM
Raymond V. Damadian M.D. – Chairman of the Board, President, Treasurer
Claudette J. V. Chan – Secretary, Director
Charles N. O’Data – Lead Independent Director
Robert J. Janoff – Independent Director
Ronald G. Lehman – Independent Director
STOCK ANALYSIS
FONR’s 52-week low was $3.02 and the 52-week high was $7.94. Right now the stock is trading at $6.31. The 50-day moving average is near $6.37 a share and the 200-day moving average is at $6.22. The company has a market cap of $38.5 million and 6.1 million shares outstanding.
*All ratios and figures updated on7/15/13
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New Theory on the Evolution of Cancer
Researchers from Arizona State University and Australian National University are studying the evolution of cancer, going back over a billion years ago when multicellular life was just beginning. Their theory, and findings from it, may not only transform cancer treatments, but may link the origins of cancer and life on earth together. Additionally, this theory challenges the traditional view that cancer develops newly in each host by various accidents or chance. Check out the article to find out more about the basis of the theory and the theory itself. Learn More HERE
The delayed employer mandate contained in the Affordable Care Act may not be the only thing delayed. This article examines the possibility of how the employer mandate delay could delay the mandate for individuals and how the delay for businesses could jeopardize the Affordable Care Act altogether. Including opinions demonstrating both the good this could bring individuals and the bad, it informs readers of the potential repercussions that may follow. While the facts are undeniable, only time will tell which of the opinions will hold true for the Affordable Care Act and the country. To read the full article, click HERE.
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