Monday, August 20, 2007
Max gains from minimally-invasive surgery?
“When it comes to surgery, ‘minimally invasive’ is what you want to hear from your doctor,” says Harry Domash in Winning Investing. Here, he looks at ArthroCare (NASDAQ: ARTC).
“ArthroCare, the latest addition to our Growth portfolio, makes the needed equipment. The firm manufactures medical devices used to perform minimally invasive soft-tissue surgeries. Its proprietary Coblation technology uses radio frequency energy to precisely dissolve target tissue while minimizing damage to surrounding healthy tissue.
“Originally focused on sports medicine, ArthroCare has expanded to ear nose and throat surgeries and to minimally invasive spinal surgeries. It’s spinal surgery inroads has reportedly attracted the attention of potential acquirers.
“ArthroCare is profitable, has cash in the bank, no long-term debt, and is cash flow positive. Analysts are expecting around 20% sales growth and 25% earnings growth for at least the next two years. ARTC reported June quarter earnings of $0.37 per share, up 35% from year ago. Sales rose 21% to $79.5 million. Buy to hold 12 to 18 months.”
posted at 3:08 PM
