Small Cap Health Care Stocks Grabbing Attention from Promoters: PPJE, BRMA & MCGI

While small cap green or renewable energy type of stocks have been the flavor of the month for many stock promoters (and sometimes still are), small cap health care stocks like PPJ Enterprise (OTCMKTS: PPJE), Plantation Development Corp (OTCMKTS: BRMA) and MedCAREERS Group Inc (OTCMKTS: MCGI) have also started to get some notice lately – perhaps because Obamacare has been topping the news lately. However, are these small cap health care stocks a better bet for investors or for their promoters? Here is a quick reality check and a checkup:

PPJ Enterprise (OTCMKTS: PPJE) Needs to Hire Better Press Release Writers

Small cap PPJ Enterprise calls itself a leader in proprietary automated healthcare reimbursement cycle software, online health information digital-systems software and practice information management digital-system software. On Friday, PPJ Enterprise rose 4.62% to $0.0068 for a market cap of $2.05 million plus PPJE is up 65.8% over the past year and down 99.8% over the past five years according to Google Finance.

What's the Catch With PPJ Enterprise? According to various disclosures, transactions of $10k and $15k have or will occur to mention PPJ Enterprise in various investment newsletters. Last Friday, PPJ Enterprise issued a press release (that looks like it was written by someone with English as a second language…) to announce it had signed an LOI for "the billing, collection agreement with a national blood bank service providers that provides LDL Aphresis, Photo Aphaeresis, Plasma Aphresis and other blood product related medical services." Apparently, the billing subsidiary of PPJ Enterprise is the only company with knowledge and expertise in the field of Blood Bank medical Services in the country. Last Thursday, PPJ Enterprise also issued another strangely worded press release to announce that it has completed a demo to "start marketing its very own and highly sophisticated and privileged software to start marketing, currently the company completed automated billing forms for the following medical specialties:….." PPJ Enterprise is also apparently expecting to receive a judgment of at least $5,000,000 to $7,000,000,000 in some sort of court case. A quick look at PPJ Enterprise's financials on Google Finanace reveals revenues of $0.19M (most recent reported quarter), $0.28M, $0.18M and $0.14M for the past four quarters along with net income of $0.07M (most recent reported revenue), $0.07M, zero and $0.01M. At the end of last March, PPJ Enterprise had $0.04M in Cash and Short Term Investments to cover $4.23M in current liabilities. Given the way the company's press releases are written though, its hard to get excited about the company.

Plantation Development Corp (OTCMKTS: BRMA) is the First Medicare Shared Savings Program ACO in Miami-Dade County

Small cap Plantation Development Corp's subsidiary Baroma Health Partners was among the first new Accountable Care Organizations developed while subsidiary Baroma Healthcare International, LLC. is the first Medicare Shared Savings Program ACO in Miami-Dade County, Florida. On Friday, Plantation Development Corp, which apparently has changed its name to Baroma Inc, fell 4.99% to $0.04 plus BRMA is down 92% since last January according to Google Finance.

What's the Catch With Baroma Inc? According to various disclosures, a transaction or transactions of $25k have or will occur to mention Baroma Inc in various investment newsletters. Last Tuesday, Baroma Inc announced a strategic relationship with Walgreen Company (NYSE: WAG) that will "bring pharmacists and hospital staff together to help reduce re-admissions and increase medication adherence for Baroma's accountable care organization (ACO)." Otherwise and back in September, Baroma Inc gave an update about its growth potential and noted that it and its subsidiaries on January 1st, 2013 had begun their engagement with The Center for Medicare and Medicaid Services (CMS) to participate in the Medicare Shared Savings Program (MSSP) as the first Accountable Care Organization (ACO) based in Miami-Dade County. The Company's agreement with CMS allows for the ACO to receive up to half of the savings generated by quality improvement through coordinated care and cost saving initiatives for its Medicare-Fee-For-Services population in South Florida. A quick look at Baroma Inc's financials reveals no revenues; net losses of $161k (most recent reported quarter), $68k and $184k plus net income of $41k for the past four quarters; and $10k in cash to cover $10k in current liabilities and $255k in other liabilities at the end of June. So perhaps investors should wait for the first Accountable Care Organization (ACO) based in Miami-Dade County to generate some revenues.

MedCAREERS Group Inc (OTCMKTS: MCGI) Announces an Exhibitor Schedule (But Has Largely Been Quiet)

Small cap MedCAREERS Group's focus is to develop and build value through its wholly-owned subsidiary Nurses Lounge, Inc., an online professional network and communication source for nurses that offers a "21st century solution" to recruitment and information that cannot be accomplished on a static nursing school or association website. On Friday, MedCAREERS Group closed $0.125 for a market cap of $6.59 million plus MCGI is up 108.3% over the past year and down 86.8% over the past five years according to Google Finance.

What's the Catch With MedCAREERS Group? According to various disclosures, a transaction or transactions of $4k has or will occur to mention MedCAREERS Group in various investment newsletters. Last Tuesday, the MedCAREERS Group announced its fall exhibitor schedule for the Nurses Lounge. Otherwise, the MedCAREERS Group has largely been quiet with the press releases as its SEC filings fill the newswires. A quick look at MedCAREERS Group's financials reveals revenues of $2k (most recent reported quarter), $6k, $6k and $8k for the past four quarters along with net losses of $263k (most recent reported quarter), $186k, $522k and $177k. At the end of last July, MedCAREERS Group had $77k in cash to cover $1,178k in current liabilities. So really it remains to be seen how Nurses Lounge will generate significant revenue and profits from its Nurses Lounge.