IRVINE, Calif., March 17, 2000 (PRIMEZONE) -- (www.ibchannel.com) - IBC reported today that although portfolio manager David Kern boasts on his web site that "The only reliable way to find small cap stock opportunities is to go out and 'kick the tires '- visit with corporate managements, their suppliers, customers and competitors," he issued a negative statement on CBNC about MedCom USA (Nasdaq:EMED) remarking on its surge in price this year.
Mark Bennett, MedCom USA CEO stated, "To the best of my knowledge David Kern has never kicked our tires - visited with management, our suppliers, or customers. Mr. Kern has an open invitation to visit our corporate headquarters."
Not rated by Morningstar, the Fremont U.S. Small cap fund is up only 12% this year (compared to EMED's approximate 600%) and only holds 1.5% of its assets in stocks like MedCom which have a market cap of $100 to $249 million and $64 million in assets under management according to its web site. (see http://cfs.stockpoint.com/fremont/performance.asp)
Although MedCom USA has soared this year, the company is still undervalued in comparison to its peers. At the high end of the range Healtheon/WebMd Corp. (Nasdaq:HLTH) boasts over a $6 Billion Market cap. If MedCom USA were attain the same capitalization its stock price would have to trade between $175 to $200 per share. On the low end of the range, Medscape Inc. (Nasdaq:MSCP) trades at about a $400 Million Market Cap. If MedCom were to hit this number, its stock would have to trade at $12.50 to $14.00 per share.
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