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MedClean Technologies Inc. (OTCBB: MCLN)

MedClean Technologies Inc. (MCLN), formerly Aduromed Industries Inc., provides solutions for managing medical waste onsite, including designing, selling, installing and servicing on site (in-situ) turnkey systems to treat regulated medical waste. The Company provides these systems to hospitals and other medical facilities as efficient, safe, cost effective and legally compliant solutions to incineration, off site hauling of untreated waste and other alternative treatment technologies and methodologies. MCLN’s principal products are the MedClean series systems. Also effective January 2, 2009, the Company merged its former wholly owned subsidiary, Aduromed Corporation (Aduromed), with and into the Company.

The Company was formerly known as Aduromed Industries Inc. and changed its name to Medclean Technologies Inc. in January 2009. MedClean Technologies Inc. is based in Bethel, Connecticut.

Source: Reuters.com, SEC Filings.

Financial Summary

Total revenue for the quarter ended September 30, 2009, was $1,556,292 compared with $748,758 for the same period in 2008, an increase of $807,534 or 107.8%.

Revenues derived from the sale of consumables, component parts, service billings and amortization of maintenance contracts increased $149,416 or 84% in the current quarter to $326,931. The increase in revenue was attributable to increased billings for goods and services from an increased install base of hospitals that have previously purchased MCLN’s MedClean system.

The gross profit for the three months ended September 30, 2009, was $914,249 (58.7% of total revenue) compared with a gross profit of $266,519 (35.6% of total revenue) for the same three-month period of 2008.

Total operating expenses for the three months ended September 30, 2009, was $571,577 compared with $1,373,861 for the same three-month period in 2008, a decrease of $802,284. In the three months ended September 30, 2008, MCLN recognized non-cash equity based compensation to service providers and employee of $785,000 as compared to $35,424 recorded as equity based compensation for the three months ended September 30, 2009.

Source: Reuters.com, SEC Filings.

Analyst Consensus

No chart available.

Source: www.ft.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/estimates?symbol=MCLN.OB

Investment Highlights

MCLN and Vestera announced in late September a co-marketing agreement between both companies, marking a strategic partnership that both companies expect will further expand operations and better provide the healthcare industry with the most effective, automated solution that addresses pharmaceutical waste management to control increasing costs and facilitate environmental responsibility.

Vestara’s EcoRex Automated Pharmaceutical Waste Management System uses barcode technology, which is already widely used in hospitals, to track drug utilization to prevent medication mistakes. The system uses an active database of more than 180,000 National Drug Code (NDC) products to instantly categorize pharmaceutical waste at the time of presentation, eliminating human error and potential cross contamination.

Source: http://www.medcleantechnologies.com/index.html

Technical Analysis

Source: http://stockcharts.com

MCLN is trading above its 50 day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

MCLN’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, MCLN is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for MCLN currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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