LAGUNA NIGUEL, March 16, 2004 (PRIMEZONE) -- OptimumCare Corporation (OTCBB:OPMC) today announced that Barrow Street Research, one of the oldest independent online research firms based in New York City, has re-established research coverage of the corporation with a buy recommendation.
"Since we first initiated coverage of OptimumCare Corporation in 1997, the company has undergone significant changes and, in our opinion, is now poised to embark on a period of sustained growth in both sales and earnings," the report notes. Other key points cited in the renewed coverage of the company include the facts that:
-- "OPMC has aggressively consolidated operations in the past year,
and is now on the verge of returning to profitability."
-- "OPMC is actively seeking acquisitions that can significantly
contribute to the company's future growth."
-- "For 2004, we estimate that the company will have revenues in the
vicinity of $10 million, and that per share profits may be in the
range of $0.05-$0.10."
-- "The company's balance sheet is solid with no long-term debt."
-- "OPMC's strong management team is capable of leading the company
to its next level of growth."
Recent growth, the report notes, has been driven by the company's additional focus on staffing services, which now represent two thirds of company revenues.
"It's in 2004 that we believe investors will begin to see a significant improvement in OPMC's financial position," the Barrow Street analyst notes.
"This year we estimate that the company has the potential to achieve revenues of nearly $10 million, reflecting growth in both the psych hospital business and temporary staffing. This estimate could prove conservative if anticipated acquisitions are completed."
"In our opinion," the report concludes, "OptimumCare Corporation represents a superior opportunity for high-risk oriented investors wanting to participate in the healthcare sector, and we are initiating coverage of the company with a BUY rating."
A full version of the research report is available at www.barrowstreet.com .
Created in 1987, OptimumCare Corporation provides healthcare services in two industry segments. The behavioral health contract segment provides management teams to client hospitals and medical centers on a long-term contract basis to run inpatient and outpatient behavioral health services. The temporary healthcare staffing segment provides temporary skilled nurses, social workers and other professionals to a broad base of medical and healthcare client sites.
Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties, including the risks associated with plans, the effects of changing economic and competitive conditions, government regulation which may affect facilities, licensing, healthcare reform which may affect payment amounts and timing, availability of sufficient working capital, program development efforts and timing, and market acceptance of new programs which may affect future sales growth and/or costs of operations. Additional information may be obtained by reviewing the Company's reports filed from time to time with the SEC.