Medical Action Industries (NASDAQ:MDCI)

CAPS Rating: 5 out of 5

The Company develops, manufactures, markets and supplies a variety of disposable medical products. It's products are marketed to acute care facilities in domestic and international markets, dental and veterinary offices, out-patient surgery centers.

Recs

2
Player Avatar PsychoDr (93.44) Submitted: 9/15/2006 4:20:23 PM : Outperform Start Price: $17.74 MDCI Score: -79.51

Little known Medical Actions is a medical products producer, specializing in disposable medical supplies. They are one of the smaller players in this area, but continue to grow annually through well timed acquisitions and seemless integration of acquired companies. Production of disposable medical goods results in a continuous stream of recurrent purchasing by their clients and acquisitions allow the company to offer a wider array of products. Profit margin is around 7%, however, the company prides itself on being the low price leader (like Walmart) and sales continue to climb yoy. MDCI has very low debt, though they are agressive in expansion through acquisition of other companies. ROE, ROA, ROC all above 10% and the stock PE is lower than competitors. Quick and Current rations are outstanding, assuring sufficient capital to fund existing operations and future acquisitions without increasing debt. Has already run up more than 30% this year, with a new acquisition to close end of 2006.

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