BLVD Centers Corp (CXV.V)

Basically in the acquisition of addiction rehabilitation centres in the US. Just signed a couple of deals today. Growing by acquisition as well as organically. It’s the same group that brought in Patient Home Monitoring (PHM-X). Michael Dalsin (Chairman) has said that the organic growth of this one will make the organic growth at Patient Home Monitoring looks like it is really nothing at all. Have a fair bit of cash on the balance sheet. Has a pipeline of 10 companies in advanced discussions for acquisition.

A good model, but he prefers Patient Home Monitoring (PHM-X). This company depends on acquiring properties, which it is doing satisfactorily. It is kind of a health luxury stock in a way in that treatment is very expensive.

Trying to roll up the US drug addiction therapy market; this is a big problem in the US. There are lots of individual centres, and they charge an arm and a leg to go into these treatment centres for 30-90 days. A very fragmented industry. It is a big, big market. He worries that it is getting a lot of association with the management team, which has cross-executives with Patient Home (PHM-X). Patient Home stock has done well, but this stock is early stage. They don’t have the revenue, they don’t have the base and they don’t have the diversification. It is certainly one to Watch, but it is far riskier at this point.

The same management team as Patient Home Monitoring (PHM-X). This one is rolling up addiction rehab centres in the US. A very fragmented market and not a lot of big players in it. They are also seeing organic growth. The 1^st centre they acquired 6 months ago was doing about $60,000 a month in revenue and is now doing over $300,000 a month.

Patient Home Monitoring (PHM-X) or Convalo Health International (CXV-X)? This is a company that Patient Home Monitoring launched a few months ago. They just did a financing last week for $7.5 million, but upped it to $15 million because of the strong institutional demand. This is outpatient rehab centres and they have 2 in LA. A growing market because now it is being increasingly covered by insurance companies and Medicare in the US. A parity act was passed by Obama, which is to help treat mental illnesses, addiction, etc. on the same level playing field as physical illnesses.

Drug and alcohol rehabs. This is the Chairman’s (Patient Home Monitoring (PHM-X) latest company that he has just brought out. It will be very similar, i.e. another consolidation story. The business is very fragmented in the US. When Obama care went through a few years back, there were some changes which allowed young adults to be covered under their parents plan until they are age 26. At the same time, there was a court ruling that allows mental health and addiction to be treated the same way that physical health is. It means that everyone has to have access to this, and there is a shortage of rehabs in the US. They have bought one rehab centre in Hollywood and are planning to do a few more, hopefully over the next several months. Because of the success of Patient Home Monitoring, evaluation on this is really high, but what you are looking at is what they are building down the road.