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I came across this stock this morning scanning the lists of best gainers. Medical Action Industries, Inc. (MDCI) is having a nice day today trading as I write at $17.25 up $1.20 or 7.48% on the day. I do not own any shares of this stock.
According to Money.cnn.com, MDCI "...develops, manufactures, markets & distributes disposable surgical-related products, including disposable laparotomy sponges, towels and related products to physician, dental and veterinary offices."
On November 10, 2003, MDCI reported results for the three months ended September 30, 2003. This was reported by Yahoo.com and picked up from BUSINESS WIRE. Net sales for the second quarter were $32.36 million an increase of $8.78 million or 37% over the $23.58 million the prior year. Net income for the period increased 33% to $2.38 million or $.23/diluted share compared to $1.79 million or $.18/diluted share last year.
Looking at Morningstar.com, we find a fairly nice record of increasing revenues starting with $58 million in 1999, $71 million in 2000, $75.4 million in 2001, $82.8 million in 2002, $104.8 million in 2003 and $112.9 million in the trailing twelve months.
Earnings/share have grown steadily from $.21/share in 1999 to $.85/share in the trailing twelve months.
Free cash flow has been a bit erratic but has stayed positive lately ranging from $4 million in 2001 to $6 million in the trailing twelve months.
Balance sheet wise, the company does not have much cash at $200,000 reported on Morningstar, but DOES have $28.2 million in other current assets, more than enough to cover the $10.5 million in current liabilities and also make a dent on the $27.1 million in long-term debt.
This is truly a small-cap firm with a Market Cap currently at $173.0 milllion. The trailing p/e is reasonable at 19.31, with a forward p/e (fye 31-Mar-05) at 15.74. The PEG is nice at 1.07, and price/sales also dirt-cheap at 1.31.
Yahoo statistics goes on to report 9.97 million shares outstanding with 8.00 million of them that float. There are only 82,000 shares out short representing 1.367 trading days.
I actually like this stock a lot. If I get some cash somewhere today, might considering buying (that is, if I have to sell some stock at a loss lol)...the valuation is excellent, I like the field they are in...that is medical/surgical disposables...and the steady trend of revenue growth is exciting as well. Latest quarter was a blow-our quarter for them.
Something to think about don't you think? Thanks again for stopping by. If you have any questions, comments, or words of encouragement, please feel free to contact me at firstname.lastname@example.org