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Daxor Corp. (AMEX: DXR): Healthy Profits

Daxor Corp. (DXR) is a medical device and instrument maker focused on blood volume analysis (BVA) and blood and semen storage. The company’s BVA-100 product measures human blood volume and is used in the treatment of heart disease and kidney failure. The company markets its products to hospitals and radiology imaging centers and apparently, there is limited or no competition in the market for BVA products, giving Daxor and the BVA-100 a dominant market position.

Last week, Daxor said it received an order for BVA-100 from a hospital in Maryland and that a hospital in North Carolina has agreed to a trial of BVA-100. New York-based Daxor said BVA-100 is the only FDA approved diagnostic device which provides for a 98% accurate measurement of blood volume. The product is used in conjunction with Daxor’s diagnostic kit known as Volumex.

Of note to investors, Daxor resumed paying a dividend last month after not paying one for 12 years. The dividend is $1 annually, or 25 cents a quarter, giving Daxor shares an impressive 5.6 dividend yield. The company also has a securities and investments portfolio valued at over $101 million, which translates to almost $24 a share. Daxor receives special tax treatment since its chief executive officer, Joseph Feldschuh, owns more than half of the company’s 6 million-plus shares.

Two analysts follow the company, including one that expects Daxor shares to climb to $30. The analysts expect Daxor’s 2008 sales to almost double to $3.66 million and for the company to earn 10 cents a share. The company has a market value of almost $80 million and trades 4,100 shares a day. Daxor shares closed today at $18.41, not far off the 52-week high of $19.

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