WTKN - WellTek, Inc. (OTCBB Stock)

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Grass Roots Research has issued a Research Report On WellTek, Inc.

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Cohen Short Term Price Target Index $1.40
Cohen Intermediate Term Price Target Index $1.74
Cohen Long Term Price Target Index $2.23

INVESTMENT THESIS & RECOMMENDATION

WellTek Inc., a manufacturer of medical and fitness equipment, is diversifying into the lucrative health and wellness service
markets. The Company intends to leverage its globally recognized MedX Brand to access related high growth niche markets
within the health and wellness industry. These services will not only augment equipment sales, but will also create new
revenue streams with significant growth potential. WellTek seeks to tap the high demand medical back and neck pain market
segment with its value-based treatment centers under its Pure HealthyBack division. The Company is also targeting the healthconscious
elite class with its fitness studios under its lime Fitness division. WellTek envisions an extended global presence
through both, organic growth and strategic joint ventures.
The aging baby boomer population and rising costs of healthcare and obesity rates has led to investments in innovative health,
fitness and wellness products and services. The Wellness Industry is expected to be a $1.0 trillion market by 2010, according
to economist, Paul Zane Pilzer. And, according to IHRSA President & CEO Joe Moore, healthcare spending is expected to
double by 2016 to $4.1 trillion. The Company is ready to capitalize on the increasing demand for innovative health and
wellness services given its highly accomplished team of professionals and brand recognition.
Providing the Company raises approximately $3 million of capital, we forecast significant top line growth as WellTek enters
the service segment with multiple complementary business lines. The business model features strong organic growth potential
world-wide through tactical replication and scaling. Revenues are projected to grow at a CAGR of 124% through 2009-2013.
Our short term target price of $1.40 reflects forward P/E multiple of 13.3x our estimated FY 2011 EPS. We project an
intermediate price target of $1.74 and our long term price target is $2.23 per share. WTKN is potentially a lucrative investment
opportunity for risk-averse investors.