The market started off enthusiastically with a quick gain with the news that Intel was optimistic about the coming quarter. The Schering-Plough piece did not help and the market paused in its recent bullish move with a bit of a correction. Currently the Dow is trading at 9413.79 down 9.89 on the day but the NASDAQ at 1783.83 is up 6.28.
Looking through the biggest percentage gainers I came across DJ Orthopedics, Inc. (DJO). This company, according to CNN.Money, "...is an orthopedic sports medicine company that designs, manufactures and markets products & services that repair, regenerate and rehabilitate soft tissue and bone, help protect against injury and treat osteoarthritis of the knee."
Currently, DJO is trading at $10.89 up $.52 or 5.01% on the day. The latest earnings report, for the second quarter of 2003, was released on 8/5/03. According to NYTimes on the Web, net revenues for the quarter ending June 28, 2003, were $47.4 million, an increase of 4% over last year's net revenue of $45.7 million. Net income in the quarter was $2.7 million or $.15/share compared with a net loss of $4.9 million or $(.27)/share in 2002.
Morningstar.com shows a nice steady increase in revenue starting at $85.3 million in 1996, $94.9 million in 1997, $104 million in 1998, $116 million in 1999, $144 million in 2000, $169 million in 2001, and $183 million in 2002. Free cash flow has improved recently from a $(5) million in 20002, $(10) million in 2001, to a positive $11 million in 2002 and $14 million in the trailing twleve months.
Assets and liabilities are fairly well balanced with $13.2 million of cash and $64.0 million of other current assets vs. $24.7 million of current liabilities and $89.3 million in long-term liabilities.
DJO is a fairly small company with a market cap of $186.1 million with 17.9 million shares outstanding and only 9.3 million of them that float. No dividend is paid. Due to prior losses, no p/e is reportable and the price/sales is a reasonable 1.00 per Yahoo. There are only 119,000 shares out short...representing 1.23 days of average trading volume.
Overall, this is a nice small orthopedics firm. I own some EXAC in my trading portfolio but do not own any share of this company. Good luck investing!
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