We recommend the purchase of ICU Nedical Inc. (ICUI @$29.70). ICUI develops, manufactures and sells proprietary disposable medical connection systems for use in intravenous therapy applications and to protect users from accidental spread of infectious diseases. For the three months ended 3/31/03, sales rose 47% to $30.8 million. Net income rose 56% to $7.1 million. We estimate ICUI will earn $1.60 per share on revenue of $111 million this year and $1.92 per share next year. Projecting an average earnings growth rate of 20%, we estimate ICUI's curent PEG ratio to be .94x, substantially below those of its peers'.
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