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The Sep. 19 Value Line had a column on the medical ultrasound industry written by Philip Seligman. He said,
"Ultrasound (u/s) is one of the least expensive modalities (only X-ray exams cost less), a factor that is helping the u/s equipment makers to penetrate the emerging econmies of Asia and Latin America, mainly with low-end and mid-range devices. But even the high-end units are selling well worldwide as the improving image quality of ultrasound seeeves to lower overall medical costs."
...
"Of all the companies noted, only ATL and Acuson specialize in ultrasound, and tracking them should provide the closest view of the u/s industry. Their stocks, which are likely to perform as well as the year-ahead market and are ranked average for Safety, have better-than-average appreciation potential to 2000-2002."
From Seligman's write-up of of ACN:
"We look for earnings to continue rising at 30%-plus annual rates to 2000-2002. Top line growth at double digit yearly rates should also be sustainable, as the Sequoia and Aspen penetrate foreigh markets. And margins, aided by rising volume and ongoing cost-cutting programs should continue to expand."
A [very] condensed comparison of ATL and ACN, which were selling at 27 and 41, respectively, at the time of the writeup ..................:
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...............................ACN ....... ATL <br>
Timeliness .....................3 ..........3 <br>
Safety..........................3 ..........3 <br>
Beta............................0.9 ........1.0 <br>
Comparative Financial Strength B++ .........B+ <br>
Earnings Predictability ....... 20 .........10 <br>
1998 Sales/Share ..............18.30 .......34.50
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