Heartening News at Possis Medical
By Gene G. Marcial
Back on Mar. 13, 2002, shares of medical-device maker Possis Medical (POSS) hit a high of 22. Then they tumbled to 8 by July 26, in the wake of the overall market collapse. Recently, they have been on a tear, reaching 18 on Jan. 15. Some pros are saying that the stock will easily top its old high in 2003.
Here's why: Possis makes a line of devices to extract life-threatening blood clots. Possis' patented AngioJet system is the only minimally invasive technology approved by the Food & Drug Administration for removing clots from coronary blood vessels, bypass grafts, and leg arteries. Analyst Jacqueline Waterman of Jesup & Lamont Securities says Possis is aiming for AngioJet to be an effective adjunct to angioplasty, stenting, and distal protective procedures. In a few years, she says, it will be a major treatment for heart attacks and ischemic strokes.
Waterman figures Possis, which earned 34 cents a share in fiscal 2002 ended July 31, on sales of $42 million, will make 36 cents on $56 million in 2003 and 49 cents on $70 million in 2004. Analyst Douglas Eaymers of Dougherty & Co. rates Possis a strong buy based on its rapid revenue growth and widening market share.
Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.