Invasive medicine and bleeding go together. What does this have to do with stock investment? The answer lies in this small capital corporation from Minneapolis, MN.
The company has two life-saving technology platforms. One is a range of products to stop bleeding. The other is to make fine guides and tubes which surgeons can use to enter human blood vessels. All surgical procedures require one or both of these technological aids. Competition is limited because surgeons need device suppliers on whom they can rely to save the lives of their patients.
The company is just over 10 years old. It has built a clear brand for innovation and quality. It is not lacking in business management skills either. The company focuses its direct marketing efforts to cardiologists and interventional radiologists. It allies with resellers to promote variations of its core product lines to other medical specialists. It is therefore structured to optimize revenues from a relatively small base of selling and distribution costs. Another sign of management capability has been the rapidity with which the company has settled a patent dispute to the mutual satisfaction of all stakeholders in the matter.
This appears to be a top stock pick that no investor should miss. The market capitalization is below $100 million in April 2008. The stock price during the month has stayed below $6.50 against a 52-week high of $10. The Gross Margin has been above 68% over the last five years. Each unit of stock is expected to earn between 20 and 30 cents for this full year.
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