Doctor Up Your Portfolio With This Medical Communications Company

by Louise Harris, Investment U Research
November 6, 2009

The healthcare reform debate continues to swirl in Washington. And Marc Lichtenfeld and Louis Basenese have discussed this crucial topic recently, offering their thoughts on the companies best positioned to profit.

That’s because regardless of the back-and-forth and political slanging match, the healthcare sector still offers strong potential for solid returns, due to skyrocketing demand.

In particular, one small-cap poised for gains is the Utah-based firm ZYTO Corp. (OTC: ZYTC). It focuses on medical communication software and services, including an operating system that transfers information from computers to humans.

But ZYTO goes beyond simple data input. It uses patent-pending methods that monitor biological states in near-real time, creating a stimulus-response experience called a bio-survey.

(Translation: It reads life signs and converts them into easily readable data for medical personnel.)

During that bio-survey, computer data – known as virtual stressors – stimulate observable changes in the biological state.

The technology then analyzes the interchange between the computer’s stimulus and the patient’s response, giving medical personnel the information to create comprehensive, client-specific health solutions.

But while the technology is impressive, let’s break the company down in terms that investors can appreciate…

Prognosis for ZYCO: Strong

  • ZYTO’s third-quarter 2009 earnings doubled, compared with the third quarter 2008, posting more than $1.1 million for the quarter.
  • Revenue for the nine months ending Sept. 30, 2009 rose 64% from the same period last year.
  • Demand for the company’s products has increased in Europe and ZYTO expects that trend to continue internationally in the months ahead.
  • ZYTO has a customer base of 2,000 so far and growing.

With those accomplishments, it’s drawn the attention of Larry Oakley, – founder of WallStreetCorner.com and the Conservative Speculator newsletter.

Touting ZYTO’s 30 million shares outstanding with 9 million floating, and its strong demand, Oakley expects share price to climb to $1.50 by 2010.

Healthy Enough to Take on Change

Due to the increasing global population and longer life expectancy, ZYTO has a ready-made consumer base. As people live longer, they require extra healthcare. And with costs soaring, patients need a way to reign in expenses.

To meet those needs, ZYTO created the Virtual Clinic, which allows patients to access their doctor’s information anywhere in the world. This makes it useful for doctors, too, who can conduct bio-surveys remotely. Saves time. Saves money. Cuts down on mistakes.

Few others have stepped into the niche market of online medical information, despite an increasing reliance on the Internet for anything and everything. That makes ZYTO stand out in the field. And its Virtual Clinic is perfectly suited for the world’s changing healthcare needs.

Even with government interference looming over the industry and the consistently heavy competition within the healthcare sector, I expect demand for ZYTO’s products to increase.

Good investing,

Louise Harris

More on this topic (What's this?)
Can These 5 Pharma Stocks Keep Paying Big Dividends?
5 Blue Chip Healthcare Stocks To Buy Now
Read more on Pharma & Healthcare at Wikinvest
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