A Winning Report..

Grassroots Independent Research Report SMEV

On Monday, July 12, 2011, Cohen Independent Research issued their analyst report on our company Simulated Environment Concepts (we make the SpaCapsule) through its Grass Roots Research firm.   This of course was a tremendous day as once again the items we covered in our first shareholder conference call have once again come to fruition.  Not to mention, with a $0.29 price target, despite our still feeling undervalued, represents a potential win for our investors… especially the long-term supporters.

What we feel many investors don’t understand is the naturally inherent broad functionality of the SpaCapsusle.   You see… we’re not deliberately attempting to be all things to all people.  All we want to do is produce the best functioning medical device to act as a means to the overall good health and wellness of society.   It just so happens that a myriad of groups and industries have gravitated toward the SpaCapsule all on their own and for uniquely different reasons; inadvertently affording us the ability to essentially become “all things to all people.” This research report, in our opinion, may for the first time bring clarity to this.

Our potential reach and penetration is increasing constantly, but the report focused on:

The physical therapy market: A $10 billion dollar U.S. market.

Weight Loss: Where the treatment cost for obesity represents $147 billion dollars in domestic healthcare cost annually with well over 3,000 facilities dedicated to offering services for weight control.

Fitness centers: Accounting for nearly $15 billion dollars in domestic revenues with nearly 25,000 fitness centers across the country.

Massage Therapy:  An estimated $16 – $20 billion dollar industry in 2009; where franchises like Zen Massage Center and Massage Green have rapidly expanded to satisfy demand.

Franchise Market (massage Therapy):  Where massage therapy centers like Massage Envy have over 600 locations in 42 states with hundreds of millions of dollars in value.

The report also sheds light on a topic not normally discussed; company’s market sector.   While we’re not totally of the opinion we fall entirely into the Medical Appliances & Equipment Industry (a subsector of Healthcare), as the report suggest, it is not a bad title to carry.

SE Concepts, does in fact at this moment design, develop and manufacture aesthetic medical products.  According to this report, aesthetic medical products are normally produced by companies within the Medical Appliances & Equipment Industry… a $900+ billion dollar market.  We also seem to be in good company here with likes of Medtronic, Inc. and Edwards Lifesciences Corporation (trading on the NYSE) – sector competitors.   However, where the report really seems to drive this proposition home is in the discussion of our direct competition with Syneron Medical, LTD (NASDAQ: ELOS), makers of VelaShape™.

VelaShape™, a FDA cleared device that according to its website, effectively and safely contours, shapes and slims the body by reducing cellulite and firming problem areas in as little as 4 treatments, claims to be used by over 10,000 patients daily, Worldwide; aiding in Syneron Medical’s 52 week trading range of between roughly $7.00 and $15.00 per share and boasting a market cap of close to $500 million dollars.   This may very well be the clearest indication of where SE Concepts and the SpaCapsule could at the very least achieve.

At the end of the day, we’re very happy with what we have achieved and know very well the fullest potential of our company and the SpaCapsule.  With almost 900 capsules (an approximate $27,000,000 value) expected to be purchased over the next four years through our current distribution contracts, along with the three additional distributors we anticipate engaging, we strongly believe that our presence will be felt globally.   And as the Research Report leads us to reasonably conclude, with the various vertical markets accessible to us along with the sheer size of our addressable market place, even if we only managed to perform nominally, the potential to generate revenues in excess of $20,000,000 yearly appears to be all within the realm of possibility.

This research report was a win for us!

Grassroots Independent Research Report SMEV


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