More Good News Should Propel Stock Higher

Investment and Company Research
Opportunity Research
COMPANY UPDATE

One of the biggest hurdles in the medical marijuana and recreational marijuana industries is changing for the better which, when finalized, will have a profoundly positive impact on MediSwipe.

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MEDISWIPE, INC.

More Good News Should Propel Stock Higher

Rob Goldman
rob@goldmanresearch.com

February 25, 2014
 

MEDISWIPE, INC. (OTCQX - MWIP - $0.3345)

Price Target $1.00 Rating: Speculative Buy
 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

MediSwipe, Inc. provides innovative patient solutions and is the leader in Compassionate Care Technology for the medicinal marijuana industry. MediSwipe provides terminal-based service packages and integrated web Portal add-ons for physicians, clinics, hospitals and medical dispensaries that include: digital patient records, Electronic Referrals, Credit/Debit Card merchant services, and health and wellness product lines including beverages, and accessories. Plus, the Company sells the Mont Blunt brand of vaporizers and alternative tobacco products.

 

 

KEY STATISTICS

 
Price as of 2/24/14 $0.3345  
52 Wk High - Low $1.274 – $0.081  
Est. Shares Outstanding 57.0M  
Market Capitalization $19.1M  
3 Mo Avg Vol 2,011,000  
Exchange: OTC:QX  
 

COMPANY INFORMATION

MediSwipe, Inc.
319 Clematis Street
Suite 400

West Palm Beach FL 33401
www.MediSwipe.com

info@mediswipe.com
248.262.6850

Conclusion: One of the biggest hurdles in the medical marijuana and recreational marijuana industries is changing for the better which, when finalized, will have a profoundly positive impact on MediSwipe.

Despite approval in 20 states and D.C., medical marijuana (and recreational marijuana) dispensaries have been forced to conduct cash-only business due to age-old regulations prohibiting banks from doing business with such entities. In the first of what is likely to be a series of dramatic shifts, the federal government finally gave banks a road map for conducting transactions with legal marijuana sellers so these new businesses can operate like any other enterprise, including paying taxes.

We believe that these guidelines are a positive but not quite a panacea for the industry. However, it is likely the first major step prior to the government changing the laws regarding marijuana at the federal level. Once that occurs, the floodgates will open and the industry will experience exponential growth, akin to the repeal of The Prohibition Act.

Separately, many states are watching the comments of the Colorado state government closely and based on the recent increase in the projected tax revenue from the sale of recreational marijuana, it is likely that additional states join the fray in the coming quarters.

With its peers trading at an average market cap substantially higher than MediSwipe, we believe that this overlooked MWIP has not yet made the big, inevitable run higher and could easily trade up to $1.00 in the near term. Plus, MWIP is the industry’s only pure play fully reporting company and has significantly reduced its debt in 2013. Offering huge potential in a key segment of the industry, we rate MWIP Speculative Buy.

 

 

Recent Trading History For MWIP

(Source: BarChart.com)

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

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