• Many state bills have mandated that communities and counties maintain a medical transportation provider for their residents.
• Government Medicare spending is expected to double in the next nine years and go up from there.
• Residents aged 65 and older will go up 92% in number by 2030, requiring a lot more emergency and non-emergency transportation.

There are over 15,000 ambulance services providers in the United States, but only two national ones: AMR and Rural-Metro Corporation.

Privately-owned AMR is the leading medical transportation provider with over $1 billion of revenue. That leaves Rural-Metro as the sole public company in the national market. Rural has taken advantage of its growing industry by posting over 1400% gains since the start of 2002. Take a look:

Rural-Metro is a small company that we would be interested in here at Penny Sleuth, but we feel its time has passed. It is currently trading for close to 90 times earnings. But there are still 15,000 other regional medical transportation services providers. Many have tons of potential…

While I was looking into these small companies in the medical transportation industry, I ran into one tiny company with a market cap under $5 million.

This tiny company covers an area that is populated densely with the 65-and-over age bracket, including Florida with the second highest population of this group in the country, behind California. The company is poised to take off. This is exactly the kind of thing that provides investors an opportunity to ride a true, penny stock onto future mid- or large-cap status.

We would love to exploit this stock’s potential here, but we just can’t give you the name of this company. It’s simply too small…

If we write to all of our readers about a company that only trades a few thousand shares a day, it would only take a few buyers to push the price sky high, possibly causing some big trouble for everyone.

But this idea isn’t going anywhere. It’ll be an important one for years to come.

Sincerely,
Jim Nelson
July 16, 2007

Penny Stock Medical Services was originally featured in the Penny Sleuth.