Rochester Medical Corp (NASDAQ:ROCM)

Hi

Positive cash flow, increasing earnings, and no long term debt.

ROCM investment in building its sales team has been made, so top line growth will begin falling the bottom line in the coming quarters.

This is one of my STARZ.
Here is the thought process on this STAR:
a) Divided rate over Zero
b) 3 Year Beta between -5 & +3
c) 15% + Insider ownership
d) No greater than -50% Growth rate for the last 3 years (tough last couple of years so good that insiders are still owning the stocks)
e) Current CAPS rating between 3 Stars & 5 Stars
Open to all Industries and Sectors screened this down to just 250 stocks. I like round numbers. 12 of them I already own through other screening tools. I tend to be somewhat conservative but looking for 3 things at this point in my investing:
1. Stability & Strength
2. Yield and Modest Growth
3. Strong Position within a sector regardless of whether the
entire sector is strong or not. Each sector has to perform to some degree for the whole world economy to function. I am looking for 5 or more years down the road, ROI, and Growth. Not looking for rockets, just stars. This is a Star!!

Potential buyout target

Getting back in to an old favorite.

This stock hasn't been as volitle, as a whole, as the market and often wild swings occurred with no reason. Although their margins are squeezed, at present, there is plenty of cash to carry on with through the dark period. A plus is the higher ownership level and I like that!

Medical device maker with innovative, anti-infective Foley catheter, $3/share in cash, and pending litigation with Covidien that could result in cash windfall based on previous settlements with C.R. Bard and others.

tpx

For a user of their key product it is very valuable to get 200 free a month in stead of 4. (1st. of April press release!)

I do not say that they will be using 50x more but maby 15X. The stock must get a nice take of again.

A "high flier", but fundamentally very sound. Real clean balance sheet. Earnings are on the come, and since it's so thinly traded, any above average buying volume could make this run up again, maybe, just maybe to last year's highs--30!!!

one of the worst picks for Jim Cramer. I don't see any upside on this stock for awhile.

Thumb up. Innovator with only product of its kind... Saves lifes and I dont see any other reason to use normal tubes that can potentially kill patients, even if they cost more. Lets hope hospitals think the same.

Unknown and unloved, yet very important to those who stay in the hospital....

Undervalued

Lawsuits are almost settled, sales are ramping up, margins are expanding and the macro hospital market is in the market for a product like this.

HelicalZz @ 11.47

While current p/e of 4 reflects big judgment against rivals, a rudimentary analysis that spreads the judgment over the years (assuming it was earned from sales) gives a p/e of 6, which is still darn good; three of the competitors acceded, 4th one, Covidian isnt a big player, so the money from that settlement unlikely to be big; one of the rivals had to agree marketing company products; this bodes well because it has other innovations in addition to the litigated catheters; the court win shows the grit and determination of the company, like David slaying the Goliaths; stock beaten down by Investors Business Daily speculators taking losses for 07; still ignored by herding Wall Street analysts; while insiders have been selling, it was at higher levels and they still have very high equity in the company; $150 mil foley catheters sell per year, almost ROCM's market cap, company may be able to charge more for its premium product.

After winning some lawsuits and expanding their exposure in hospitals, the superiority of their products will finally result in great profits for ROCM