China Nuvo (CNUV.PK): A Sub-Penny in the Hot Healthcare Sec

August 16, 2011

Industry experts estimate the healthcare sector consumes over 16% of the economy and is growing, combined with the 70 million baby boomers that have entered or will be entering retirement age putting additional pressure on the healthcare system.

This proves to be great news for China Nuvo Solar Inc. (CNUV.PK), a company who owns a unique patent pending solar cell technology based on photovoltaic cells with integral light-transmitting wave guides in a ceramic sleeve. The advantage of this technology is that less exposed surface area is required to generate electricity.

So what does this have to do with the multi-billion dollar healthcare sector?

Earlier this year, CNUV announced that it has signed a Definitive Agreement to acquire medical and surgical supply company SurgLine, Inc. and expects to complete the merger by August 31st of this year. SurgLine offers medical and surgical supplies and products at substantial savings through stocking distributors and institutional buyers by sourcing products globally without the historical brand premium and industry markup.

SurgLine's signature product line, Surg, is produced by the same manufacturers as other leading medical companies without the brand premium. They are reducing the ‘brand premium’ much in the same way as Costco has with their Kirkland brand. By removing the brand premium we can pass along cost savings to our customers which include U.S. based distributors and institutions.

SurgLine is founded on the premise that the U.S. healthcare system MUST reduce spending and do more with less, thus Surgline offers it’s exclusive line of high quality “private labeled” surgical products, under the brand “Surg,” for the operating and emergency room at substantial savings of up to 40% when compared to the larger well known legacy medical and surgical suppliers. SurgLine business model focuses on procuring the “Best of Class” products and then distributing these products to hospitals and free standing surgery centers throughout the United States for substantially less money.

Economic Challenges in the U.S. Healthcare Market

Economic challenges have impacted all healthcare providers as costs continue to rise and patient reimbursements decline. Recently enacted legislation is expected to exasperate this situation as more people are added to the healthcare system without a commensurate rise in resources. Providers today must do more with less as costs increase and reimbursement decreases. Providers need to find alternatives and explore creative options to lower costs. Even the U.S. Government is under pressure to control Medicare & Medicaid costs and must reduce payment for high cost items such as surgical implants.

SurgLine’s Advantage

SurgLine’s advantage is based on over a decade of international business relationships with worldwide manufacturers. In total, SurgLine has established business relationships with nearly 200 different manufacturers globally, which are many of the same manufacturers utilized by today’s leading brands. Based on these relationships, product knowledge and market awareness, SurgLine created a low cost solution that offers customers “more value for less of your healthcare dollar” when compared to the competition.

In anticipation for the merger, CNUV has already established an accomplished and highly experienced management team to its planned acquisition of SurgLine, Inc.

SurgLine has been busy themselves as last week they signed an agreement with Tandem Receivable Solutions to a western distributorship. Tandem, working as an Independent Revenue and Contracting Consultant, is committed to assisting the Company from sales through collections for their clients and facilities nationwide.

Tom Toland, CEO of SurgLine stated, "Combined the Tandem team brings over 47 years of healthcare experience and have cultivated relationships within the medical industry that are integral to the Company's success. Tandem currently services over 25 facilities and each facility does up to 2,000 cases per month."

SurgLine also recently reached an agreement that will allow them direct access to the multi-billion dollar VA market, via Gonneville, Inc. (Gonneville), whereby Gonneville will add the Company's medical and surgical product lines to their products for sale to the U.S. Department of Veterans Affairs ("VA").

The release noted, "in 2009 the Veterans Health Administration ("VHA") had over 485,000 acute inpatient/medical surgical procedures and over 400,000 outpatient endoscopy procedures. With expected increases to the already 27 million veterans who have unselfishly served their country; surgical procedures are increasing, necessitating increases in the demand for quality medical supplies. The challenge is balancing the needed increase in procedures and supplies while remaining focused on the priority of reduced spending. Healthcare industry analysts stress that current healthcare spending is not sustainable. SurgLine's intention is to address this issue by providing the highest quality surgical instrumentation at the lowest possible cost, with savings upward of 30%, which will revolutionize the historical costs of medical and surgical products."

These are just a couple of SurgLine's latest accomplishments that make them an attractive acquisition target for CNUV, and early investors.

Remember that no matter how good a potential investment looks from the outside, we always encourage you to do your own due diligence. The best way to begin your research is to review the company's website, latest press releases and always check out their filings with the SEC.

Intelligent traders use Stop Loss Orders to protect their investments. We highly recommend you do the same and never allow greed to get the best of you. Book your profits when you can!

Happy trading,

PSP

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