Why Spectranetics Is Special

On The Up And Up
Tiny medical device maker Spectranetics (SPNC) has been a stock on the go, climbing since May from 5 to 11. Its devices are used to treat coronary artery ailments. Its CVX-300(R) laser is the only Food & Drug Administration-approved system for removing plaque and clots in blood vessels. In April, Spectranetics won FDA approval to use the laser for removing blockages in leg arteries. The company's laser is gaining "significant attention in the medical community," says Suraj Kalia of investment firm Rodman & Renshaw, who tags the stock "outperform," with a target of 14. Occlusions in arm and leg arteries will be a large market for Spectranetics, says Matt Duncan of investment firm Stephens. He expects earnings to jump from 3 cents a share on sales of $55 million in 2006 to 14 cents in 2007 on $68 million. Elizabeth Jones of Kornitzer Capital Management, which owns stock, says the volume of laser procedures are on the rise and puts Spectranetics in a "sweet spot" in a fast-growing market.

Note: 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.

By Gene G. Marcial

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