Ludlow Issues .02 Target on AMSZ

(NEW YORK)--Ludlow Capital issued a research note on AcuMedSpa Holdings, Inc. (OTC:AMSZ), a provider of Medical Aesthetic, Spa and Acupuncture services, with a B+ rating and near-term price target of $0.02 per share.

Investment Highlights

- Reducing Shares Outstanding and Authorized
- Pending Share Buyback Program
- Operational Revenues, Profitable
- National Expansion and Acquisitions
- Tightly Held Public Float
- Market Cap of only $600,000

Summary

Unlike many other plays, AMSZ offers one of the best share structures and valuations of any stock currently trading under $0.01 per share. While most companies push their shares outstanding higher and higher to access liquidity, AMSZ has taken the old school route of reducing its share structure to increase shareholder value. Dilution is NOT an issue here, but rather the opposite.

AcuMedSpa is an operational company, with around $2 million in revenues, profitable, and developing a national roll-out expansion plan through acquisitions.

The Company has been reducing both their shares authorized and outstanding, and announced a possible share buyback program which should reduce the shares outstanding even further.

AMSZ currently has around 146 million shares issued and outstanding, which at a current price of $0.004 a share would equate to a market capitalization of only $600,000. Thus, based on their efforts to actually tighten the share structure, share buyback program, pending acquisitions, and operating revenues/profits we are adding AMSZ to our premier watch list with a near-term target of $0.02 per share, and a B+ rating.

Other Premier Holding Plays

- KAT Exploration (KATX)
- MOP Environmental Solutions (MOPN)
- Title Consulting Services, Inc. (TITL)
- Liberty Star Uranium & Metals (LBSR)

Risks

The company is currently traded on the Pink Sheet exchange, and thus has a limited trading market established. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions regarding these kinds of securities.

Ludlow Capital began coverage on AMSZ on August 25, 2010 at a price of $0.0039 per share.