10/25/99 CDA-Investnet Insiders' Chron. 20
1999 WL 8492627
First Call/Thomson Financial Insiders' Chronicle
Copyright 1999 Information Access Company. All rights reserved. COPYRIGHT 1999
American Banker-Bond Buyer
Monday, October 25, 1999
Volume 24; Issue 43
Micro-Cap CORNER.
FULL TEXT
Ready for BLAST-OFF?
It is a happy time in the animal kingdom:Blue Rhino (RINO) has
marriedBison Valve. The gas grill cylinder exchange company acquired
Bison Valve Assets in mid-September, attracted by Bison's overfill
prevention devices. Blue Rhino expects that the acquisition will be
accretive to earnings in FY 2000. Even if it isn't, the company has
other things to celebrate. The core business of cylinder exchange is
doing well, as same-store cylinder exchanges were up 25% in the last
quarter. Also, the company has begun to ship an additional product,
patio heaters. Insiders are evidently enthusiastic, as they are buying
shares in striking numbers. From September 7 through 27, four insiders
purchased 140,943 shares at prices ranging between $7.00 and $7.88 per
share. Leading the way was Vice Chairman Andrew Filipowski, buying more
than 135,000 shares. Director Jerald Shadley and CFO Mark Castaneda also
took part, purchasing 3,500 and 1,350 shares, respectively.
Spacelabs Medical (SLMD) may also be on the launch pad. The stock
looks to be a compelling value play, as evidenced by the fact that
nearly 9% of the company has been acquired by a syndicate touting
venerable value/contrarian investment group Tweedy Brown. Insiders have
also been moving in. From August 16 through October 15, three insiders
purchased 22,000 shares at prices ranging from $13.50 to $15.00pershare.
And perhaps with reason. The company has recently presented its
Ultraview Anesthesia Delivery System, a product that regulates the flow
of anesthetic agents and gases during surgery. The product's "intuitive
design makes it easy to use in the busy surgical theatre" -- not a bad
characteristic when you stop think about it. In addition, the company announced an alliance with private software firm Cedaron Medica, by
which the Spacelab Pyramis Cardiology Information Management System will
be enhanced with new functionality. Utilizing additional forms of more
advance technology, the company has just update d its Caremaster Data
Repository system to the web. Also, another product the Ultraview
Digital Telemetry system, made its debut in July. The new product will
provide both ECG-only and multiparameter monitoring of ambulatory
patients.
Unless you have a medical background, all of this probably means
nothing to you. However, this most likely does: All of the events
described above have had positive effects that have contributed to a
black bottom line. On a year-to-date basis, the company has actually
turned a fairly considerable profit, contrast to the loss it generated
in the comparable period last year. The market has continued to ignore
the stock, however, and it is trading at all-time lows. Market apathy
has quite possibly created a buying opportunity for Spacelabs; atleast
insiders and some reputable value investors evidently think so.
Finally, unlike those at the climax of 80's movie, Cocoon, these
seniors aren't likely headed into outer space anytime soon. Or, atleast
the stock isn't. Shares of Diversified Senior Services (DISS) have been
drifting gently downward all year. But insiders appear confident. From
August 5 through September 30, two insiders purchased 31,100 shares at
prices ranging between $3.38 and $3.56 per share. Fundamentals appear to
be improving at the tiny company. On a year-to-date basis, reported
revenues are up more than 75%, and net operating profit is just that (as
opposed to the loss generated in the comparable period in 1998). For
what it's worth, management has indicated satisfaction with the
occupancy rates at the two new 60-bed/ 60-door facilities opened this
year, and two more 30-bed facilities are also in the pipeline. Make no
mistake, this is a company that has yet to do anything to impress the
market. And there is certainly no promise that the future will be any
better, but recent insider behavior, coupled with improving fundamentals
and ongoing expansion plans, may say otherwise.
---- INDEX REFERENCES ----
KEY WORDS: APPLIANCE CONTROL VALVES; ANESTHESIA APPARATUS; NURSING & REST HOMES; UNITED STATES
INDUSTRY: Health Care Providers (HEA) |
