Institutions own virtually all the stock, but retail investors should not feel left out as there are nearly 12 million stocks available for trade. The stock price is very close to the 52-week high at the end of the first week of April 2008, and some say the stock appears on course to gain new price heights on NASDAQ.
The company is in the dynamic Medical Equipment & Supplies Industry. This is an optimal part of the Healthcare Sector. The core technology of this company is making devices and surgical aids from materials that can be used inside the human body. The company started with inserts for blood vessels, but has branched into the relevant and profitable area of orthopedics.
The capability to supply products for multiple branches of medicine makes the marketing function productive. The company is able to reach diverse medical specialties across a unitary sales platform, and the management has made judicious organic expansion moves to widen its business moat further.
The five year average gross margin has been 68.98%. The norm for the Medical Equipment & Supplies Industry has been less than 60% during this period. The company has also done consistently better than its direct competitors in terms of its net profit margin.
The company has had to withdraw an important product line. This is a normal business risk in the entire Healthcare Sector. However, the management has recovered swiftly from the set-back and is now poised for renewed growth and profits.
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