Healthcare Business Services Rated 'Speculative/3', $0.27 Target Valuation By Investrend Research Analyst Gary Vassalotti.

NEW YORK -- (Investrend Research Syndicate) Healthcare Business Services Group (OTCBB: HBSV) has been rated "Speculative / 3," with an $0.27 Target Valuation by Investrend Research Analyst Gary Vassalotti.

The analyst stated:

The company has competent, and experienced management, very small capitalization, fragmented market, low / no cash assets, and a potential windfall of $1.6 million from land sale.

HBSGI main business, for over 14 years, is medical billing (revenues 2003 $1.798 million) physician practices. The company processes the bills received from the medical facility through the insurance providers, through to final payment from the patients.

The company intends for AutoMed to be a one-stop shopping type of product. The software itself is web based and is about ready to go.

The company intends to price the product at $50,000 for one person/one computer installation. This seems to be about a mid-market price.

In addition, HBSGI is also developing a surgery center business. This business will be conducted through the Silver Shadows, LLC subsidiary. The company believes that the Surgery Centers, with hard assets, will improve the stability of the companies' financial condition.

There are significant risks to starting two businesses at the same time with little sales history. However, the software business ties in directly with the Billing Services that has provided HBSGI with operating revenue for the past fifteen years. This expansion is a logical step. HSBCG has used the software since 2003, and it is ready to package for marketing.

Given the fragmented condition of the billing services industry, the potential for the surgical centers, and the company specific risks noted in a prior section, HBSGI is rated Speculative / 3.

The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238

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