Mike: Sorry I'm late responding. I was trying to get the specific info on the only broker I found that followed UTMD, but I cannot right now. When UTMD went to UM, Yahoo stopped providing links to the company under Yahoo Quotes, which should be a temporary phenomenon. Presumably that should be up one of these days. The broker company name may be "Crescent." My printout shows an address of gibbs.chem.columbia.edu.crescent. (But I can't access it now).
At any rate, there is a thoughtful analysis of the company, with their estimate of fair value at $20-22.
This is a small cap stock with 8.8m shares, with a buyback plan for purchase of another 1m shares. Market cap of something like $115M.
The stock was at $20 when Baxter announced it would stop distributing one product. This product was a large percentage of sales, but a relatively small percentage of profit, as it is a low margin product. And UTMD is now selling it through other smaller distributors. Their other high margin products have increasing sales.
To summarize why I like UM, albeit as a somewhat speculative investment: Medical products are a growth industry in my opinion, and these are basic products. For example, the Cordguard product sells for $27, and none of their products is all that expensive. There is decent potential for export growth (they are bringing on line a plant in Ireland), UM appears to have good management, the PE is good. |
